Yahoo Finance STRT or MBLY: Which Is the Better Value Stock Right Now?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Strattec Security (STRT) and Mobileye Global (MBLY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Strattec Security is sporting a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STRT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
STRT currently has a forward P/E ratio of 12.50, while MBLY has a forward P/E of 77.43. We also note that STRT has a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MBLY currently has a PEG ratio of 5.08.
Another notable valuation metric for STRT is its P/B ratio of 0.48. 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 1.59.
These metrics, and several others, help STRT earn a Value grade of B, while MBLY has been given a Value grade of F.
STRT stands above MBLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRT is the superior value option right now.
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Strattec Security Corporation (STRT) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report
