雅虎香港財經 VLVLY or MOD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of AB Volvo (VLVLY) and Modine (MOD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, AB Volvo has a Zacks Rank of #2 (Buy), while Modine has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VLVLY 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 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VLVLY currently has a forward P/E ratio of 9.93, while MOD has a forward P/E of 26.25. We also note that VLVLY has a PEG ratio of 0.59. 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 0.77.
Another notable valuation metric for VLVLY is its P/B ratio of 3.15. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MOD has a P/B of 6.65.
Based on these metrics and many more, VLVLY holds a Value grade of A, while MOD has a Value grade of C.
VLVLY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VLVLY is likely the superior value option right now.
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AB Volvo (VLVLY) : Free Stock Analysis Report
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
