Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Stellantis N.V. (STLA) - free report >>
Porsche Automobil Holding SE Unsponsored ADR (POAHY) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stellantis N.V. (STLA) - free report >>
Porsche Automobil Holding SE Unsponsored ADR (POAHY) - free report >>
Image: Bigstock
STLA vs. POAHY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Automotive - Foreign sector have probably already heard of Stellantis (STLA - Free Report) and Porsche Automobil Holding SE Unsponsored ADR (POAHY - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Stellantis and Porsche Automobil Holding SE Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STLA is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
STLA currently has a forward P/E ratio of 3.31, while POAHY has a forward P/E of 4.10. We also note that STLA has a PEG ratio of 0.09. 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. POAHY currently has a PEG ratio of 2.87.
Another notable valuation metric for STLA is its P/B ratio of 0.44. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, POAHY has a P/B of 0.51.
These metrics, and several others, help STLA earn a Value grade of A, while POAHY has been given a Value grade of C.
STLA sticks out from POAHY in both our Zacks Rank and Style Scores models, so value investors will likely feel that STLA is the better option right now.