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ADNT vs. MBLY: Which Stock Is the Better Value Option?

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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Adient (ADNT - Free Report) and Mobileye Global (MBLY - 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.

Currently, Adient has a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ADNT likely has seen a stronger improvement to its earnings outlook than MBLY has recently. But this is just one piece of the puzzle for value investors.

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.

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 10.16, while MBLY has a forward P/E of 29.00. We also note that ADNT has a PEG ratio of 0.65. 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. MBLY currently has a PEG ratio of 1.01.

Another notable valuation metric for ADNT is its P/B ratio of 0.75. 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, MBLY has a P/B of 0.83.

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

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


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