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MGA vs. DRVN: Which Stock Is the Better Value Option?
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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Magna (MGA - Free Report) and Driven Brands Holdings Inc. (DRVN - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Magna and Driven Brands Holdings Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MGA has an improving earnings 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.
MGA currently has a forward P/E ratio of 11.16, while DRVN has a forward P/E of 46.52. We also note that MGA has a PEG ratio of 0.57. 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. DRVN currently has a PEG ratio of 1.15.
Another notable valuation metric for MGA is its P/B ratio of 2.12. 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, DRVN has a P/B of 3.13.
These metrics, and several others, help MGA earn a Value grade of A, while DRVN has been given a Value grade of C.
MGA has seen stronger estimate revision activity and sports more attractive valuation metrics than DRVN, so it seems like value investors will conclude that MGA is the superior option right now.
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MGA vs. DRVN: Which Stock Is the Better Value Option?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Magna (MGA - Free Report) and Driven Brands Holdings Inc. (DRVN - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Magna and Driven Brands Holdings Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MGA has an improving earnings 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.
MGA currently has a forward P/E ratio of 11.16, while DRVN has a forward P/E of 46.52. We also note that MGA has a PEG ratio of 0.57. 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. DRVN currently has a PEG ratio of 1.15.
Another notable valuation metric for MGA is its P/B ratio of 2.12. 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, DRVN has a P/B of 3.13.
These metrics, and several others, help MGA earn a Value grade of A, while DRVN has been given a Value grade of C.
MGA has seen stronger estimate revision activity and sports more attractive valuation metrics than DRVN, so it seems like value investors will conclude that MGA is the superior option right now.