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

Core Viewpoint - Investors are evaluating Compagnie de Saint-Gobain - Unsponsored ADR (CODYY) and TopBuild (BLD) for potential value opportunities in the Building Products - Miscellaneous sector, with CODYY currently presenting a stronger value proposition [1]. Group 1: Zacks Rank and Earnings Outlook - CODYY has a Zacks Rank of 2 (Buy), while BLD has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for CODYY compared to BLD [3]. - The Zacks Rank strategy focuses on companies with positive earnings estimate revision trends, which is a key consideration for value investors [2]. Group 2: Valuation Metrics - CODYY has a forward P/E ratio of 15.54, significantly lower than BLD's forward P/E of 19.31, suggesting that CODYY may be undervalued [5]. - The PEG ratio for CODYY is 4.05, while BLD's PEG ratio is 4.24, indicating that CODYY's valuation is more favorable when considering expected earnings growth [5]. - CODYY's P/B ratio is 2.16, compared to BLD's P/B of 5.2, further supporting the notion that CODYY is a better value option [6]. Group 3: Overall Value Grades - Based on various valuation metrics, CODYY holds a Value grade of B, while BLD has a Value grade of C, reinforcing the preference for CODYY among value investors [6].