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ADNT vs. MBLY: Which Stock Should Value Investors Buy Now?

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Investors interested in Automotive - Original Equipment stocks are likely familiar with Adient (ADNT - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Adient has a Zacks Rank of #1 (Strong Buy), while Mobileye Global has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ADNT likely has seen a stronger improvement to its earnings outlook than MBLY has recently. But this is only part of the picture for value investors.

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.

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.

ADNT currently has a forward P/E ratio of 11.66, while MBLY has a forward P/E of 51.98. We also note that ADNT has a PEG ratio of 0.66. 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 2.07.

Another notable valuation metric for ADNT is its P/B ratio of 0.94. 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 1.08.

These metrics, and several others, help ADNT earn a Value grade of A, while MBLY has been given a Value grade of D.

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


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