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Which construction colossus should you buy following today’s news?

Engineering play Tyman (LSE: TYMN) has edged away from recent one-month highs in Tuesday business following its latest trading update. Still, today’s 2% fall is the result light profit-booking — not to mention investor caution ahead of today’s US election — rather than a lukewarm market reaction.

Tyman advised that

encouraging growth has continued in European markets and volumes have held up in UK and Irish markets, offsetting slower trading in North America since the half year.”

As a result the company — which provides components for windows and doors — said that overall trading remains in line with prior expectations.

And despite challenges in some markets, Tyman remains bullish about its long-term prospects, commenting that

the group’s broad international exposure and balanced portfolio means Tyman is well positioned for 2017 and beyond, despite macroeconomic uncertainties and continued currency volatility.”

Globe trotter

And Tyman is entitled to remain upbeat, having significantly improved its long-term growth opportunities in foreign marketplaces through shrewd acquisition activity.

The purchase of North American roofing play Bilco in July, for example, advances the firm’s position in what is obviously an exciting growth market. And March’s acquisition of window specialists Giesse gives Tyman a useful diving board into Europe and Asia.

Tyman operates in across 19 countries, in total, and for many investors this makes it a more secure growth pick than London’s quoted housebuilders like Taylor Wimpey (LSE: TW).

These companies are of course extremely dependent upon the strength of the UK economy. But with June’s EU vote raising the chances of increased unemployment and an erosion in real wages, many fear that the seismic growth rates enjoyed by Taylor Wimpey and its peers in recent times could be juddering to a halt.

So which is better?

Well, both Taylor Wimpey and Tyman offer splendid value for money, in my opinion.

An expected 15% earnings rise leaves the Footsie homebuilder dealing on a P/E rating of 8.2 times, a figure that more than factors in any problems facing the housing market. And a dividend yield of 8% trounces the FTSE 100 average of 3.5% by a long chalk.

Of course the Brexit referendum has raised the risk profile of Taylor Wimpey and its peers. But I believe the country’s massive housing shortage should keep earnings growth afloat in the near-term and beyond. Just today Halifax reported that average home values rose 1.4% in October, shooting up from the 0.3% rise printed in the previous month.

And I reckon a strong UK housing market and improving foreign footprint should deliver solid shareholder returns at Tyman too. This view is shared by the City, and a 12% bottom-line advance is expected in 2016, resulting in a cheap P/E rating of 12 times. Furthermore, a dividend yield of 3.6% also offers splendid bang for one’s buck.

Be brave and keep buying

So Britain is about to tumble out of the EU. So what?!

With volatility comes opportunity!

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.