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MOD 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 Modine (MOD - Free Report) and Driven Brands Holdings Inc. (DRVN - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Modine is sporting a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. 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 MOD has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
MOD currently has a forward P/E ratio of 9.56, while DRVN has a forward P/E of 27.70. We also note that MOD has a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DRVN currently has a PEG ratio of 1.46.
Another notable valuation metric for MOD is its P/B ratio of 1.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DRVN has a P/B of 3.47.
These are just a few of the metrics contributing to MOD's Value grade of A and DRVN's Value grade of C.
MOD sticks out from DRVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that MOD is the better option right now.
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MOD vs. DRVN: Which Stock Is the Better Value Option?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Modine (MOD - Free Report) and Driven Brands Holdings Inc. (DRVN - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Modine is sporting a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. 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 MOD has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
MOD currently has a forward P/E ratio of 9.56, while DRVN has a forward P/E of 27.70. We also note that MOD has a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DRVN currently has a PEG ratio of 1.46.
Another notable valuation metric for MOD is its P/B ratio of 1.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DRVN has a P/B of 3.47.
These are just a few of the metrics contributing to MOD's Value grade of A and DRVN's Value grade of C.
MOD sticks out from DRVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that MOD is the better option right now.