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MGA or GNTX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Magna (MGA - Free Report) or Gentex (GNTX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Magna is sporting a Zacks Rank of #1 (Strong Buy), while Gentex has a Zacks Rank of #3 (Hold). This means that MGA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
MGA currently has a forward P/E ratio of 12.08, while GNTX has a forward P/E of 17.71. We also note that MGA has a PEG ratio of 1.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GNTX currently has a PEG ratio of 3.78.
Another notable valuation metric for MGA is its P/B ratio of 2.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GNTX has a P/B of 4.49.
These metrics, and several others, help MGA earn a Value grade of A, while GNTX has been given a Value grade of C.
MGA stands above GNTX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MGA is the superior value option right now.
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MGA or GNTX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Magna (MGA - Free Report) or Gentex (GNTX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Magna is sporting a Zacks Rank of #1 (Strong Buy), while Gentex has a Zacks Rank of #3 (Hold). This means that MGA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
MGA currently has a forward P/E ratio of 12.08, while GNTX has a forward P/E of 17.71. We also note that MGA has a PEG ratio of 1.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GNTX currently has a PEG ratio of 3.78.
Another notable valuation metric for MGA is its P/B ratio of 2.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GNTX has a P/B of 4.49.
These metrics, and several others, help MGA earn a Value grade of A, while GNTX has been given a Value grade of C.
MGA stands above GNTX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MGA is the superior value option right now.