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STRT vs. MGA: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Strattec Security (STRT - Free Report) and Magna (MGA - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, both Strattec Security and Magna are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle 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.
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.
STRT currently has a forward P/E ratio of 14.02, while MGA has a forward P/E of 43.25. We also note that STRT has a PEG ratio of 0.93. 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. MGA currently has a PEG ratio of 13.13.
Another notable valuation metric for STRT is its P/B ratio of 0.45. 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, MGA has a P/B of 1.39.
These are just a few of the metrics contributing to STRT's Value grade of A and MGA's Value grade of C.
Both STRT and MGA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that STRT is the superior value option right now.
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STRT vs. MGA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Strattec Security (STRT - Free Report) and Magna (MGA - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, both Strattec Security and Magna are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle 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.
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.
STRT currently has a forward P/E ratio of 14.02, while MGA has a forward P/E of 43.25. We also note that STRT has a PEG ratio of 0.93. 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. MGA currently has a PEG ratio of 13.13.
Another notable valuation metric for STRT is its P/B ratio of 0.45. 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, MGA has a P/B of 1.39.
These are just a few of the metrics contributing to STRT's Value grade of A and MGA's Value grade of C.
Both STRT and MGA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that STRT is the superior value option right now.