We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MGA or GNTX: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Magna (MGA - Free Report) or Gentex (GNTX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Magna has a Zacks Rank of #1 (Strong Buy), while Gentex has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that MGA likely has seen a stronger improvement to its earnings outlook than GNTX has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
MGA currently has a forward P/E ratio of 21.02, while GNTX has a forward P/E of 24.16. We also note that MGA has a PEG ratio of 4.20. 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. GNTX currently has a PEG ratio of 11.67.
Another notable valuation metric for MGA is its P/B ratio of 1.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GNTX has a P/B of 4.21.
These are just a few of the metrics contributing to MGA's Value grade of A and GNTX's Value grade of D.
MGA sticks out from GNTX in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGA is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MGA or GNTX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Magna (MGA - Free Report) or Gentex (GNTX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Magna has a Zacks Rank of #1 (Strong Buy), while Gentex has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that MGA likely has seen a stronger improvement to its earnings outlook than GNTX has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
MGA currently has a forward P/E ratio of 21.02, while GNTX has a forward P/E of 24.16. We also note that MGA has a PEG ratio of 4.20. 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. GNTX currently has a PEG ratio of 11.67.
Another notable valuation metric for MGA is its P/B ratio of 1.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GNTX has a P/B of 4.21.
These are just a few of the metrics contributing to MGA's Value grade of A and GNTX's Value grade of D.
MGA sticks out from GNTX in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGA is the better option right now.