Yahoo Finance HDELY or WMS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Heidelberg Materials AG Unsponsored ADR (HDELY) and Advanced Drainage Systems (WMS). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Heidelberg Materials AG Unsponsored ADR has a Zacks Rank of #2 (Buy), while Advanced Drainage Systems has a Zacks Rank of #3 (Hold). This means that HDELY'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
HDELY currently has a forward P/E ratio of 8.49, while WMS has a forward P/E of 24.30. We also note that HDELY has a PEG ratio of 0.71. 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. WMS currently has a PEG ratio of 1.43.
Another notable valuation metric for HDELY is its P/B ratio of 0.96. 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, WMS has a P/B of 11.53.
These are just a few of the metrics contributing to HDELY's Value grade of A and WMS's Value grade of C.
HDELY has seen stronger estimate revision activity and sports more attractive valuation metrics than WMS, so it seems like value investors will conclude that HDELY is the superior option right now.
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Heidelberg Materials AG Unsponsored ADR (HDELY) : Free Stock Analysis Report
Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report
