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BWA or MBLY: 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 BorgWarner (BWA - Free Report) and Mobileye Global (MBLY - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
BorgWarner has a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that BWA likely has seen a stronger improvement to its earnings outlook than MBLY has recently. 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.
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.
BWA currently has a forward P/E ratio of 9.40, while MBLY has a forward P/E of 67.61. We also note that BWA has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MBLY currently has a PEG ratio of 3.85.
Another notable valuation metric for BWA is its P/B ratio of 1.43. 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, MBLY has a P/B of 2.30.
These are just a few of the metrics contributing to BWA's Value grade of A and MBLY's 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 or MBLY: Which Is the Better Value Stock Right Now?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both BorgWarner (BWA - Free Report) and Mobileye Global (MBLY - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
BorgWarner has a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that BWA likely has seen a stronger improvement to its earnings outlook than MBLY has recently. 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.
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.
BWA currently has a forward P/E ratio of 9.40, while MBLY has a forward P/E of 67.61. We also note that BWA has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MBLY currently has a PEG ratio of 3.85.
Another notable valuation metric for BWA is its P/B ratio of 1.43. 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, MBLY has a P/B of 2.30.
These are just a few of the metrics contributing to BWA's Value grade of A and MBLY's 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.