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MOD vs. RACE: 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 Modine (MOD - Free Report) or Ferrari (RACE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Modine is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that MOD likely has seen a stronger improvement to its earnings outlook than RACE has recently. However, value investors will care about much more than just this.
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.
MOD currently has a forward P/E ratio of 22.59, while RACE has a forward P/E of 49.11. We also note that MOD has a PEG ratio of 0.90. 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. RACE currently has a PEG ratio of 3.19.
Another notable valuation metric for MOD is its P/B ratio of 5.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RACE has a P/B of 26.24.
These are just a few of the metrics contributing to MOD's Value grade of A and RACE's Value grade of C.
MOD stands above RACE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MOD is the superior value option right now.
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MOD vs. RACE: Which Stock Is the Better Value Option?
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Modine (MOD - Free Report) or Ferrari (RACE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Modine is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that MOD likely has seen a stronger improvement to its earnings outlook than RACE has recently. However, value investors will care about much more than just this.
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.
MOD currently has a forward P/E ratio of 22.59, while RACE has a forward P/E of 49.11. We also note that MOD has a PEG ratio of 0.90. 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. RACE currently has a PEG ratio of 3.19.
Another notable valuation metric for MOD is its P/B ratio of 5.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RACE has a P/B of 26.24.
These are just a few of the metrics contributing to MOD's Value grade of A and RACE's Value grade of C.
MOD stands above RACE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MOD is the superior value option right now.