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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Valeo S.A. (VLEEY) or Mobileye Global (MBLY). 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 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.
Valeo S.A. and Mobileye Global are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that VLEEY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
VLEEY currently has a forward P/E ratio of 8.41, while MBLY has a forward P/E of 55.78. We also note that VLEEY has a PEG ratio of 0.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MBLY currently has a PEG ratio of 8.15.
Another notable valuation metric for VLEEY is its P/B ratio of 0.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MBLY has a P/B of 0.69.
Based on these metrics and many more, VLEEY holds a Value grade of A, while MBLY has a Value grade of D.
VLEEY sticks out from MBLY in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLEEY is the better option right now.
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Valeo S.A. (VLEEY) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report