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BLBD vs. TSLA: Which Stock Is the Better Value Option?

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Investors interested in Automotive - Domestic stocks are likely familiar with 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Blue Bird has a Zacks Rank of #1 (Strong Buy), while Tesla has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BLBD is likely seeing its earnings outlook improve to a greater extent. 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 13.99, while TSLA has a forward P/E of 204.73. We also note that BLBD has a PEG ratio of 1.53. 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. TSLA currently has a PEG ratio of 8.55.

Another notable valuation metric for BLBD is its P/B ratio of 8.04. 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 14.03.

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

BLBD sticks out from TSLA in both our Zacks Rank and Style Scores models, so value investors will likely feel that BLBD is the better option right now.


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