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F vs. FOXF: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Automotive - Domestic sector might want to consider either Ford Motor Company (F - Free Report) or Fox Factory Holding (FOXF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Ford Motor Company has a Zacks Rank of #1 (Strong Buy), while Fox Factory Holding has a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that F has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

F currently has a forward P/E ratio of 13.49, while FOXF has a forward P/E of 38.79. We also note that F has a PEG ratio of 0.62. 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 2.20.

Another notable valuation metric for F is its P/B ratio of 1.67. 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, FOXF has a P/B of 8.53.

Based on these metrics and many more, F holds a Value grade of A, while FOXF has a Value grade of F.

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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