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F vs. FOXF: Which Stock Is the Better Value Option?

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Investors interested in Automotive - Domestic stocks are likely familiar with Ford Motor Company (F - Free Report) and Fox Factory Holding (FOXF - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Ford Motor Company has a Zacks Rank of #2 (Buy), while Fox Factory Holding has a Zacks Rank of #3 (Hold). This means that F's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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.

F currently has a forward P/E ratio of 11.18, while FOXF has a forward P/E of 38.88. We also note that F has a PEG ratio of 1.31. 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. FOXF currently has a PEG ratio of 2.49.

Another notable valuation metric for F is its P/B ratio of 1.56. 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 8.15.

These metrics, and several others, help F earn a Value grade of A, while FOXF has been given a Value grade of D.

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


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