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PHIN or MOD: Which Is the Better Value Stock Right Now?

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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Phinia (PHIN - Free Report) and Modine (MOD - 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, both Phinia and Modine are sporting a Zacks Rank of #1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

PHIN currently has a forward P/E ratio of 12.70, while MOD has a forward P/E of 32.72. We also note that PHIN has a PEG ratio of 0.51. 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 0.96.

Another notable valuation metric for PHIN is its P/B ratio of 1.39. 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 7.81.

Based on these metrics and many more, PHIN holds a Value grade of A, while MOD has a Value grade of C.

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


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