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GPC vs. CARG: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Automotive - Replacement Parts sector might want to consider either Genuine Parts (GPC - Free Report) or CarGurus (CARG - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Genuine Parts is sporting a Zacks Rank of #2 (Buy), while CarGurus has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPC has an improving earnings outlook. But this is only part of the picture for value investors.
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.
GPC currently has a forward P/E ratio of 17.22, while CARG has a forward P/E of 25.02. We also note that GPC has a PEG ratio of 1.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CARG currently has a PEG ratio of 1.92.
Another notable valuation metric for GPC is its P/B ratio of 5.33. 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, CARG has a P/B of 9.45.
These are just a few of the metrics contributing to GPC's Value grade of A and CARG's Value grade of C.
GPC has seen stronger estimate revision activity and sports more attractive valuation metrics than CARG, so it seems like value investors will conclude that GPC is the superior option right now.
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GPC vs. CARG: Which Stock Is the Better Value Option?
Investors looking for stocks in the Automotive - Replacement Parts sector might want to consider either Genuine Parts (GPC - Free Report) or CarGurus (CARG - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Genuine Parts is sporting a Zacks Rank of #2 (Buy), while CarGurus has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPC has an improving earnings outlook. But this is only part of the picture for value investors.
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.
GPC currently has a forward P/E ratio of 17.22, while CARG has a forward P/E of 25.02. We also note that GPC has a PEG ratio of 1.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CARG currently has a PEG ratio of 1.92.
Another notable valuation metric for GPC is its P/B ratio of 5.33. 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, CARG has a P/B of 9.45.
These are just a few of the metrics contributing to GPC's Value grade of A and CARG's Value grade of C.
GPC has seen stronger estimate revision activity and sports more attractive valuation metrics than CARG, so it seems like value investors will conclude that GPC is the superior option right now.