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PII or FOXF: Which Is the Better Value Stock Right Now?

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Investors with an interest in Automotive - Domestic stocks have likely encountered both Polaris Inc (PII - Free Report) and Fox Factory Holding (FOXF - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Polaris Inc is sporting a Zacks Rank of #2 (Buy), while Fox Factory Holding has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PII likely has seen a stronger improvement to its earnings outlook than FOXF has recently. But this is only part of the picture for value investors.

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.

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.

PII currently has a forward P/E ratio of 16.11, while FOXF has a forward P/E of 24.01. We also note that PII has a PEG ratio of 1.34. 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. FOXF currently has a PEG ratio of 1.44.

Another notable valuation metric for PII is its P/B ratio of 6.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, FOXF has a P/B of 6.54.

Based on these metrics and many more, PII holds a Value grade of B, while FOXF has a Value grade of D.

PII has seen stronger estimate revision activity and sports more attractive valuation metrics than FOXF, so it seems like value investors will conclude that PII is the superior option right now.


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