BCC vs. FND: Which Stock Is the Better Value Option?

Investors with an interest in Building Products - Wood stocks have likely encountered both Boise Cascade (BCC) and Floor Decor Holdings, Inc. (FND). 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 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.

Boise Cascade and Floor Decor Holdings, Inc. are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

BCC currently has a forward P/E ratio of 13.40, while FND has a forward P/E of 58.95. We also note that BCC has a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FND currently has a PEG ratio of 2.57.

Another notable valuation metric for BCC is its P/B ratio of 2.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FND has a P/B of 8.25.

These metrics, and several others, help BCC earn a Value grade of A, while FND has been given a Value grade of F.

Both BCC and FND are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BCC is the superior value 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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