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GPI or RUSHA: Which Is the Better Value Stock Right Now?

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Investors interested in Automotive - Retail and Whole Sales stocks are likely familiar with Group 1 Automotive (GPI - Free Report) and Rush Enterprises (RUSHA - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Group 1 Automotive has a Zacks Rank of #2 (Buy), while Rush Enterprises has a Zacks Rank of #5 (Strong Sell) right now. This means that GPI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

GPI currently has a forward P/E ratio of 9.71, while RUSHA has a forward P/E of 36.06. We also note that GPI has a PEG ratio of 1.76. 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. RUSHA currently has a PEG ratio of 2.40.

Another notable valuation metric for GPI is its P/B ratio of 1.03. 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, RUSHA has a P/B of 1.22.

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

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


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Group 1 Automotive, Inc. (GPI) - free report >>

Rush Enterprises, Inc. (RUSHA) - free report >>

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