Yahoo Finance HDELY vs. WMS: Which Stock Is the Better Value Option?
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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Heidelberg Materials AG Unsponsored ADR and Advanced Drainage Systems are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HDELY currently has a forward P/E ratio of 8.71, while WMS has a forward P/E of 26.57. We also note that HDELY has a PEG ratio of 0.77. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WMS currently has a PEG ratio of 1.56.
Another notable valuation metric for HDELY is its P/B ratio of 0.99. 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, WMS has a P/B of 11.87.
These metrics, and several others, help HDELY earn a Value grade of A, while WMS has been given a Value grade of C.
Both HDELY and WMS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HDELY is the superior value 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
