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GNTX vs. MOD: Which Stock Is the Better Value Option?
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Investors interested in Automotive - Original Equipment stocks are likely familiar with Gentex (GNTX - Free Report) and Modine (MOD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Gentex and Modine are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GNTX is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GNTX currently has a forward P/E ratio of 13.24, while MOD has a forward P/E of 37.29. We also note that GNTX has a PEG ratio of 0.87. 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. MOD currently has a PEG ratio of 1.10.
Another notable valuation metric for GNTX is its P/B ratio of 2.63. 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, MOD has a P/B of 8.64.
These metrics, and several others, help GNTX earn a Value grade of A, while MOD has been given a Value grade of C.
GNTX stands above MOD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GNTX is the superior value option right now.
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GNTX vs. MOD: Which Stock Is the Better Value Option?
Investors interested in Automotive - Original Equipment stocks are likely familiar with Gentex (GNTX - Free Report) and Modine (MOD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Gentex and Modine are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GNTX is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GNTX currently has a forward P/E ratio of 13.24, while MOD has a forward P/E of 37.29. We also note that GNTX has a PEG ratio of 0.87. 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. MOD currently has a PEG ratio of 1.10.
Another notable valuation metric for GNTX is its P/B ratio of 2.63. 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, MOD has a P/B of 8.64.
These metrics, and several others, help GNTX earn a Value grade of A, while MOD has been given a Value grade of C.
GNTX stands above MOD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GNTX is the superior value option right now.