PRIM vs. DY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Building Products - Heavy Construction sector might want to consider either Primoris Services (PRIM) or Dycom Industries (DY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Primoris Services has a Zacks Rank of #2 (Buy), while Dycom Industries has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PRIM has an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
PRIM currently has a forward P/E ratio of 11.21, while DY has a forward P/E of 19.85. We also note that PRIM has a PEG ratio of 1.12. 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. DY currently has a PEG ratio of 2.65.
Another notable valuation metric for PRIM is its P/B ratio of 1.59. 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, DY has a P/B of 1.92.
These metrics, and several others, help PRIM earn a Value grade of B, while DY has been given a Value grade of C.
PRIM sticks out from DY in both our Zacks Rank and Style Scores models, so value investors will likely feel that PRIM is the better option right now.
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Primoris Services Corporation (PRIM) : Free Stock Analysis Report
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