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VCISY vs. ORN: Which Stock Is the Better Value Option?

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Investors with an interest in Building Products - Heavy Construction stocks have likely encountered both Vinci SA (VCISY - Free Report) and Orion Marine Group (ORN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Vinci SA is sporting a Zacks Rank of #2 (Buy), while Orion Marine Group has a Zacks Rank of #3 (Hold). This means that VCISY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

VCISY currently has a forward P/E ratio of 12.10, while ORN has a forward P/E of 101.85. We also note that VCISY has a PEG ratio of 2.69. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ORN currently has a PEG ratio of 4.07.

Another notable valuation metric for VCISY is its P/B ratio of 1.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ORN has a P/B of 1.99.

These are just a few of the metrics contributing to VCISY's Value grade of A and ORN's Value grade of C.

VCISY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VCISY is likely the superior value option right now.


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