HDELY vs. MAS: Which Stock Is the Better Value Option?
Investors interested in Building Products - Miscellaneous stocks are likely familiar with Heidelberg Materials AG Unsponsored ADR (HDELY) and Masco (MAS). 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, Heidelberg Materials AG Unsponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Masco has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HDELY has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 7.65, while MAS has a forward P/E of 18.41. We also note that HDELY has a PEG ratio of 0.52. 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. MAS currently has a PEG ratio of 3.75.
Another notable valuation metric for HDELY is its P/B ratio of 0.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MAS has a P/B of 167.96.
Based on these metrics and many more, HDELY holds a Value grade of A, while MAS has a Value grade of C.
HDELY stands above MAS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HDELY is the superior value option right now.
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Heidelberg Materials AG Unsponsored ADR (HDELY) : Free Stock Analysis Report
Masco Corporation (MAS) : Free Stock Analysis Report
