BCC or FND: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Building Products - Wood sector have probably already heard of Boise Cascade (BCC) and Floor & Decor Holdings, Inc. (FND). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Boise Cascade has a Zacks Rank of #2 (Buy), while Floor & Decor Holdings, Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BCC is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BCC currently has a forward P/E ratio of 13.01, while FND has a forward P/E of 38.77. We also note that BCC has a PEG ratio of 1.45. 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 1.55.

Another notable valuation metric for BCC is its P/B ratio of 2.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FND has a P/B of 6.77.

These are just a few of the metrics contributing to BCC's Value grade of A and FND's Value grade of D.

BCC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BCC is likely the superior value option right now.

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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
 
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