We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVGI vs. DRVN: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Commercial Vehicle Group (CVGI - Free Report) or Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Commercial Vehicle Group has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CVGI has an improving earnings outlook. 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 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.
CVGI currently has a forward P/E ratio of 10.43, while DRVN has a forward P/E of 20.72. We also note that CVGI has a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DRVN currently has a PEG ratio of 3.38.
Another notable valuation metric for CVGI is its P/B ratio of 2.48. 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 2.50.
Based on these metrics and many more, CVGI holds a Value grade of A, while DRVN has a Value grade of C.
CVGI stands above DRVN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CVGI is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CVGI vs. DRVN: Which Stock Is the Better Value Option?
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Commercial Vehicle Group (CVGI - Free Report) or Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Commercial Vehicle Group has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CVGI has an improving earnings outlook. 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 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.
CVGI currently has a forward P/E ratio of 10.43, while DRVN has a forward P/E of 20.72. We also note that CVGI has a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DRVN currently has a PEG ratio of 3.38.
Another notable valuation metric for CVGI is its P/B ratio of 2.48. 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 2.50.
Based on these metrics and many more, CVGI holds a Value grade of A, while DRVN has a Value grade of C.
CVGI stands above DRVN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CVGI is the superior value option right now.