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GNTX vs. RACE: Which Stock Should Value Investors Buy Now?
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Investors interested in Automotive - Original Equipment stocks are likely familiar with Gentex (GNTX - Free Report) and Ferrari (RACE - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Gentex and Ferrari are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that GNTX'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 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.
GNTX currently has a forward P/E ratio of 17.16, while RACE has a forward P/E of 38.96. We also note that GNTX has a PEG ratio of 1.49. 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. RACE currently has a PEG ratio of 3.45.
Another notable valuation metric for GNTX is its P/B ratio of 3.42. 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, RACE has a P/B of 13.38.
Based on these metrics and many more, GNTX holds a Value grade of B, while RACE has a Value grade of C.
GNTX has seen stronger estimate revision activity and sports more attractive valuation metrics than RACE, so it seems like value investors will conclude that GNTX is the superior option right now.
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GNTX vs. RACE: Which Stock Should Value Investors Buy Now?
Investors interested in Automotive - Original Equipment stocks are likely familiar with Gentex (GNTX - Free Report) and Ferrari (RACE - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Gentex and Ferrari are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that GNTX'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 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.
GNTX currently has a forward P/E ratio of 17.16, while RACE has a forward P/E of 38.96. We also note that GNTX has a PEG ratio of 1.49. 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. RACE currently has a PEG ratio of 3.45.
Another notable valuation metric for GNTX is its P/B ratio of 3.42. 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, RACE has a P/B of 13.38.
Based on these metrics and many more, GNTX holds a Value grade of B, while RACE has a Value grade of C.
GNTX has seen stronger estimate revision activity and sports more attractive valuation metrics than RACE, so it seems like value investors will conclude that GNTX is the superior option right now.