NCS or PGTI: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either NCI Building Systems (NCS) or PGT (PGTI). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

NCI Building Systems and PGT are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

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.

NCS currently has a forward P/E ratio of 10.88, while PGTI has a forward P/E of 23.99. We also note that NCS has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PGTI currently has a PEG ratio of 1.25.

Another notable valuation metric for NCS is its P/B ratio of 3.90. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PGTI has a P/B of 6.48.

Based on these metrics and many more, NCS holds a Value grade of A, while PGTI has a Value grade of D.

Both NCS and PGTI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NCS is the superior value option right now.

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NCI Building Systems, Inc. (NCS) : Free Stock Analysis Report
 
PGT, Inc. (PGTI) : Free Stock Analysis Report
 
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