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BWA vs. MBLY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either BorgWarner (BWA - Free Report) or Mobileye Global (MBLY - 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.
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.
Right now, BorgWarner is sporting a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BWA is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
BWA currently has a forward P/E ratio of 9.14, while MBLY has a forward P/E of 60.02. We also note that BWA has a PEG ratio of 0.68. 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. MBLY currently has a PEG ratio of 3.42.
Another notable valuation metric for BWA is its P/B ratio of 1.36. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MBLY has a P/B of 2.04.
These metrics, and several others, help BWA earn a Value grade of A, while MBLY has been given a Value grade of D.
BWA stands above MBLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BWA is the superior value option right now.
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BWA vs. MBLY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either BorgWarner (BWA - Free Report) or Mobileye Global (MBLY - 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.
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.
Right now, BorgWarner is sporting a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BWA is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
BWA currently has a forward P/E ratio of 9.14, while MBLY has a forward P/E of 60.02. We also note that BWA has a PEG ratio of 0.68. 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. MBLY currently has a PEG ratio of 3.42.
Another notable valuation metric for BWA is its P/B ratio of 1.36. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MBLY has a P/B of 2.04.
These metrics, and several others, help BWA earn a Value grade of A, while MBLY has been given a Value grade of D.
BWA stands above MBLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BWA is the superior value option right now.