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CTTAY or RACE: Which Is the Better Value Stock Right Now?
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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Continental AG (CTTAY - Free Report) and Ferrari (RACE - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Continental AG has a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CTTAY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
CTTAY currently has a forward P/E ratio of 7.64, while RACE has a forward P/E of 40.56. We also note that CTTAY has a PEG ratio of 0.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RACE currently has a PEG ratio of 3.41.
Another notable valuation metric for CTTAY is its P/B ratio of 0.90. 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, RACE has a P/B of 18.11.
Based on these metrics and many more, CTTAY holds a Value grade of B, while RACE has a Value grade of D.
CTTAY has seen stronger estimate revision activity and sports more attractive valuation metrics than RACE, so it seems like value investors will conclude that CTTAY is the superior option right now.
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CTTAY or RACE: Which Is the Better Value Stock Right Now?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Continental AG (CTTAY - Free Report) and Ferrari (RACE - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Continental AG has a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CTTAY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
CTTAY currently has a forward P/E ratio of 7.64, while RACE has a forward P/E of 40.56. We also note that CTTAY has a PEG ratio of 0.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RACE currently has a PEG ratio of 3.41.
Another notable valuation metric for CTTAY is its P/B ratio of 0.90. 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, RACE has a P/B of 18.11.
Based on these metrics and many more, CTTAY holds a Value grade of B, while RACE has a Value grade of D.
CTTAY has seen stronger estimate revision activity and sports more attractive valuation metrics than RACE, so it seems like value investors will conclude that CTTAY is the superior option right now.