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VLVLY 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 AB Volvo (VLVLY - Free Report) and Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
AB Volvo has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VLVLY likely has seen a stronger improvement to its earnings outlook than DRVN has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VLVLY currently has a forward P/E ratio of 12.07, while DRVN has a forward P/E of 24.78. We also note that VLVLY has a PEG ratio of 0.76. 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. DRVN currently has a PEG ratio of 1.40.
Another notable valuation metric for VLVLY is its P/B ratio of 2.54. 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 3.07.
These are just a few of the metrics contributing to VLVLY's Value grade of A and DRVN's Value grade of C.
VLVLY sticks out from DRVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLVLY is the better option right now.
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VLVLY or DRVN: Which Is the Better Value Stock Right Now?
Investors interested in Automotive - Original Equipment stocks are likely familiar with AB Volvo (VLVLY - Free Report) and Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
AB Volvo has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VLVLY likely has seen a stronger improvement to its earnings outlook than DRVN has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VLVLY currently has a forward P/E ratio of 12.07, while DRVN has a forward P/E of 24.78. We also note that VLVLY has a PEG ratio of 0.76. 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. DRVN currently has a PEG ratio of 1.40.
Another notable valuation metric for VLVLY is its P/B ratio of 2.54. 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 3.07.
These are just a few of the metrics contributing to VLVLY's Value grade of A and DRVN's Value grade of C.
VLVLY sticks out from DRVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLVLY is the better option right now.