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BLBD or TSLA: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Automotive - Domestic sector have probably already heard of Blue Bird (BLBD - Free Report) and Tesla (TSLA - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Blue Bird and Tesla have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

BLBD currently has a forward P/E ratio of 11.44, while TSLA has a forward P/E of 194.44. We also note that BLBD has a PEG ratio of 1.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSLA currently has a PEG ratio of 9.60.

Another notable valuation metric for BLBD is its P/B ratio of 9. 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, TSLA has a P/B of 21.81.

These are just a few of the metrics contributing to BLBD's Value grade of A and TSLA's Value grade of F.

Both BLBD and TSLA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BLBD is the superior value option right now.


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