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

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Investors with an interest in Automotive - Domestic stocks have likely encountered both Blue Bird (BLBD - Free Report) and Tesla (TSLA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Right now, Blue Bird is sporting a Zacks Rank of #1 (Strong Buy), while Tesla has a Zacks Rank of #4 (Sell). 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 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.

BLBD currently has a forward P/E ratio of 14.47, while TSLA has a forward P/E of 201.41. We also note that BLBD has a PEG ratio of 1.58. 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. TSLA currently has a PEG ratio of 8.41.

Another notable valuation metric for BLBD is its P/B ratio of 8.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TSLA has a P/B of 13.8.

These metrics, and several others, help BLBD earn a Value grade of B, while TSLA has been given a Value grade of D.

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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