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LKQ vs. SMP: Which Stock Is the Better Value Option?
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Investors with an interest in Automotive - Replacement Parts stocks have likely encountered both LKQ (LKQ - Free Report) and Standard Motor Products (SMP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
LKQ and Standard Motor Products are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LKQ has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
LKQ currently has a forward P/E ratio of 15.07, while SMP has a forward P/E of 17.26. We also note that LKQ has a PEG ratio of 1. 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. SMP currently has a PEG ratio of 2.16.
Another notable valuation metric for LKQ is its P/B ratio of 2.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SMP has a P/B of 2.46.
These metrics, and several others, help LKQ earn a Value grade of B, while SMP has been given a Value grade of C.
LKQ is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LKQ is likely the superior value option right now.
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LKQ vs. SMP: Which Stock Is the Better Value Option?
Investors with an interest in Automotive - Replacement Parts stocks have likely encountered both LKQ (LKQ - Free Report) and Standard Motor Products (SMP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
LKQ and Standard Motor Products are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LKQ has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
LKQ currently has a forward P/E ratio of 15.07, while SMP has a forward P/E of 17.26. We also note that LKQ has a PEG ratio of 1. 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. SMP currently has a PEG ratio of 2.16.
Another notable valuation metric for LKQ is its P/B ratio of 2.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SMP has a P/B of 2.46.
These metrics, and several others, help LKQ earn a Value grade of B, while SMP has been given a Value grade of C.
LKQ is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LKQ is likely the superior value option right now.