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CVGI vs. DRVN: Which Stock Is the Better Value Option?

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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Commercial Vehicle Group (CVGI - Free Report) and Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.

Commercial Vehicle Group and Driven Brands Holdings Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that CVGI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

CVGI currently has a forward P/E ratio of 6.66, while DRVN has a forward P/E of 26.84. We also note that CVGI has a PEG ratio of 0.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DRVN currently has a PEG ratio of 1.62.

Another notable valuation metric for CVGI is its P/B ratio of 1.68. 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, DRVN has a P/B of 2.97.

These metrics, and several others, help CVGI earn a Value grade of B, while DRVN has been given a Value grade of C.

CVGI sticks out from DRVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that CVGI is the better option right now.


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Commercial Vehicle Group, Inc. (CVGI) - free report >>

Driven Brands Holdings Inc. (DRVN) - free report >>

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