Back to top

Image: Bigstock

CVGI vs. NIU: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Automotive - Original Equipment stocks are likely familiar with Commercial Vehicle Group (CVGI - Free Report) and NIU TECHADR (NIU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.

Commercial Vehicle Group and NIU TECHADR are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that CVGI likely has seen a stronger improvement to its earnings outlook than NIU has recently. 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.

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.

CVGI currently has a forward P/E ratio of 12.39, while NIU has a forward P/E of 38.57. We also note that CVGI has a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NIU currently has a PEG ratio of 1.29.

Another notable valuation metric for CVGI is its P/B ratio of 3.27. 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, NIU has a P/B of 15.68.

Based on these metrics and many more, CVGI holds a Value grade of A, while NIU has a Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Commercial Vehicle Group, Inc. (CVGI) - free report >>

Niu Technologies (NIU) - free report >>

Published in