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VCISY or ORN: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Building Products - Heavy Construction sector have probably already heard of Vinci SA (VCISY - Free Report) and Orion Marine Group (ORN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

VCISY currently has a forward P/E ratio of 12.90, while ORN has a forward P/E of 122.77. We also note that VCISY has a PEG ratio of 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ORN currently has a PEG ratio of 4.91.

Another notable valuation metric for VCISY is its P/B ratio of 2.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ORN has a P/B of 2.40.

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

VCISY stands above ORN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VCISY is the superior value option right now.


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