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SPXC or DORM: Which Is the Better Value Stock Right Now?
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Investors with an interest in Automotive - Replacement Parts stocks have likely encountered both SPX (SPXC - Free Report) and Dorman Products (DORM - 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.
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.
Both SPX and Dorman Products have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SPXC currently has a forward P/E ratio of 14.98, while DORM has a forward P/E of 31.38. We also note that SPXC has a PEG ratio of 1.25. 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. DORM currently has a PEG ratio of 2.61.
Another notable valuation metric for SPXC is its P/B ratio of 3.43. 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, DORM has a P/B of 3.59.
Based on these metrics and many more, SPXC holds a Value grade of B, while DORM has a Value grade of D.
Both SPXC and DORM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPXC is the superior value option right now.
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SPXC or DORM: Which Is the Better Value Stock Right Now?
Investors with an interest in Automotive - Replacement Parts stocks have likely encountered both SPX (SPXC - Free Report) and Dorman Products (DORM - 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.
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.
Both SPX and Dorman Products have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SPXC currently has a forward P/E ratio of 14.98, while DORM has a forward P/E of 31.38. We also note that SPXC has a PEG ratio of 1.25. 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. DORM currently has a PEG ratio of 2.61.
Another notable valuation metric for SPXC is its P/B ratio of 3.43. 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, DORM has a P/B of 3.59.
Based on these metrics and many more, SPXC holds a Value grade of B, while DORM has a Value grade of D.
Both SPXC and DORM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPXC is the superior value option right now.