BCC vs. FND: Which Stock Is the Better Value Option?
Investors interested in Building Products - Wood stocks are likely familiar with Boise Cascade (BCC) and Floor Decor Holdings, Inc. (FND). 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 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, Boise Cascade has a Zacks Rank of #2 (Buy), while Floor Decor Holdings, Inc. 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 BCC has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
BCC currently has a forward P/E ratio of 11.07, while FND has a forward P/E of 69.78. We also note that BCC has a PEG ratio of 1.16. 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. FND currently has a PEG ratio of 2.98.
Another notable valuation metric for BCC is its P/B ratio of 2.38. 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, FND has a P/B of 10.11.
These metrics, and several others, help BCC earn a Value grade of A, while FND has been given a Value grade of D.
BCC has seen stronger estimate revision activity and sports more attractive valuation metrics than FND, so it seems like value investors will conclude that BCC is the superior option right now.
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Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
Floor Decor Holdings, Inc. (FND): Free Stock Analysis Report
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