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Stellantis N.V. (STLA) - free report >>
Porsche Automobil Holding SE Unsponsored ADR (POAHY) - free report >>
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Stellantis N.V. (STLA) - free report >>
Porsche Automobil Holding SE Unsponsored ADR (POAHY) - free report >>
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STLA or POAHY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Automotive - Foreign sector might want to consider either Stellantis (STLA - Free Report) or Porsche Automobil Holding SE Unsponsored ADR (POAHY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Stellantis has a Zacks Rank of #2 (Buy), while Porsche Automobil Holding SE Unsponsored ADR has a Zacks Rank of #3 (Hold). This means that STLA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
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 3.48, while POAHY has a forward P/E of 4.15. We also note that STLA has a PEG ratio of 0.09. 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. POAHY currently has a PEG ratio of 2.90.
Another notable valuation metric for STLA is its P/B ratio of 0.46. 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, POAHY has a P/B of 0.52.
Based on these metrics and many more, STLA holds a Value grade of A, while POAHY has a Value grade of C.
STLA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that STLA is likely the superior value option right now.