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MOD or DRVN: Which Is the Better Value Stock Right Now?
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Investors interested in Automotive - Original Equipment stocks are likely familiar with Modine (MOD - Free Report) and Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Modine has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MOD 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 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.
MOD currently has a forward P/E ratio of 9.03, while DRVN has a forward P/E of 29.09. We also note that MOD has a PEG ratio of 0.36. 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 1.53.
Another notable valuation metric for MOD is its P/B ratio of 1.78. 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, DRVN has a P/B of 3.64.
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 or DRVN: Which Is the Better Value Stock Right Now?
Investors interested in Automotive - Original Equipment stocks are likely familiar with Modine (MOD - Free Report) and Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Modine has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MOD 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 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.
MOD currently has a forward P/E ratio of 9.03, while DRVN has a forward P/E of 29.09. We also note that MOD has a PEG ratio of 0.36. 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 1.53.
Another notable valuation metric for MOD is its P/B ratio of 1.78. 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, DRVN has a P/B of 3.64.
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.