雅虎香港財經 VLVLY vs. MOD: Which Stock Should Value Investors Buy Now?
Investors interested in Automotive - Original Equipment stocks are likely familiar with AB Volvo (VLVLY) and Modine (MOD). 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.
AB Volvo and Modine are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that VLVLY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
VLVLY currently has a forward P/E ratio of 11.57, while MOD has a forward P/E of 28.35. We also note that VLVLY has a PEG ratio of 0.69. 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. MOD currently has a PEG ratio of 0.83.
Another notable valuation metric for VLVLY is its P/B ratio of 3.47. 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, MOD has a P/B of 7.77.
These are just a few of the metrics contributing to VLVLY's Value grade of B and MOD's 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
