Back to top

Image: Bigstock

HOG vs. FOXF: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Automotive - Domestic stocks have likely encountered both Harley-Davidson (HOG - Free Report) and Fox Factory Holding (FOXF - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Harley-Davidson is sporting a Zacks Rank of #2 (Buy), while Fox Factory Holding 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 HOG has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

HOG currently has a forward P/E ratio of 10.12, while FOXF has a forward P/E of 21.17. We also note that HOG has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FOXF currently has a PEG ratio of 1.53.

Another notable valuation metric for HOG is its P/B ratio of 2.45. 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, FOXF has a P/B of 4.47.

These metrics, and several others, help HOG earn a Value grade of A, while FOXF has been given a Value grade of C.

HOG sticks out from FOXF in both our Zacks Rank and Style Scores models, so value investors will likely feel that HOG is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Harley-Davidson, Inc. (HOG) - free report >>

Fox Factory Holding Corp. (FOXF) - free report >>

Published in