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STRT or MBLY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Strattec Security (STRT - Free Report) and 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.

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 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, Strattec Security is sporting a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #4 (Sell). This means that STRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

STRT currently has a forward P/E ratio of 15.63, while MBLY has a forward P/E of 72.21. We also note that STRT has a PEG ratio of 1.56. 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 4.73.

Another notable valuation metric for STRT is its P/B ratio of 0.44. 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, MBLY has a P/B of 1.48.

Based on these metrics and many more, STRT holds a Value grade of B, while MBLY has a Value grade of F.

STRT stands above MBLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRT is the superior value option right now.


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Strattec Security Corporation (STRT) - free report >>

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