CODYY vs. JHX: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Building Products - Miscellaneous sector should consider Compagnie de Saint-Gobain - Unsponsored ADR (CODYY) and James Hardie (JHX) for potential value opportunities, with CODYY currently presenting a better value proposition [1]. Group 1: Zacks Rank and Earnings Estimates - CODYY has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while JHX has a Zacks Rank of 4 (Sell), suggesting a less favorable outlook [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for identifying value stocks [2]. Group 2: Valuation Metrics - CODYY has a forward P/E ratio of 14.35, compared to JHX's forward P/E of 17.40, indicating that CODYY may be undervalued relative to JHX [5]. - CODYY's PEG ratio is 2.50, while JHX's PEG ratio is significantly higher at 5.58, suggesting that CODYY offers better value when considering expected earnings growth [5]. - CODYY's P/B ratio is 1.90, which is much lower than JHX's P/B of 4.96, further supporting the notion that CODYY is undervalued [6]. Group 3: Overall Value Assessment - Based on the stronger estimate revision activity and more attractive valuation metrics, CODYY is deemed the superior option for value investors compared to JHX [7]. - CODYY holds a Value grade of B, while JHX has a Value grade of D, reinforcing the conclusion that CODYY presents a better investment opportunity [6].