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CTTAY 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 Continental AG (CTTAY - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Continental AG has a Zacks Rank of #1 (Strong Buy), while Modine has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CTTAY likely has seen a stronger improvement to its earnings outlook than MOD has recently. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CTTAY currently has a forward P/E ratio of 9.42, while MOD has a forward P/E of 30.32. We also note that CTTAY has a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MOD currently has a PEG ratio of 0.89.

Another notable valuation metric for CTTAY is its P/B ratio of 3.31. 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 6.97.

These are just a few of the metrics contributing to CTTAY's Value grade of A and MOD's Value grade of C.

CTTAY has seen stronger estimate revision activity and sports more attractive valuation metrics than MOD, so it seems like value investors will conclude that CTTAY is the superior option right now.


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