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PII vs. FOXF: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Automotive - Domestic sector have probably already heard of Polaris Inc (PII - Free Report) and Fox Factory Holding (FOXF - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 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.

Polaris Inc and Fox Factory Holding are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

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.

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.

PII currently has a forward P/E ratio of 13.50, while FOXF has a forward P/E of 25.56. We also note that PII has a PEG ratio of 1.12. 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. FOXF currently has a PEG ratio of 1.54.

Another notable valuation metric for PII is its P/B ratio of 5.18. 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, FOXF has a P/B of 7.31.

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

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


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