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ADNT vs. SHYF: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Adient (ADNT - Free Report) and The Shyft Group (SHYF - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Adient has a Zacks Rank of #2 (Buy), while The Shyft Group has a Zacks Rank of #3 (Hold). This means that ADNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 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.
ADNT currently has a forward P/E ratio of 10.73, while SHYF has a forward P/E of 19.52. We also note that ADNT has a PEG ratio of 0.33. 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. SHYF currently has a PEG ratio of 0.98.
Another notable valuation metric for ADNT is its P/B ratio of 2.06. 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, SHYF has a P/B of 5.60.
These metrics, and several others, help ADNT earn a Value grade of B, while SHYF has been given a Value grade of C.
ADNT stands above SHYF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADNT is the superior value option right now.
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ADNT vs. SHYF: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Adient (ADNT - Free Report) and The Shyft Group (SHYF - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Adient has a Zacks Rank of #2 (Buy), while The Shyft Group has a Zacks Rank of #3 (Hold). This means that ADNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 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.
ADNT currently has a forward P/E ratio of 10.73, while SHYF has a forward P/E of 19.52. We also note that ADNT has a PEG ratio of 0.33. 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. SHYF currently has a PEG ratio of 0.98.
Another notable valuation metric for ADNT is its P/B ratio of 2.06. 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, SHYF has a P/B of 5.60.
These metrics, and several others, help ADNT earn a Value grade of B, while SHYF has been given a Value grade of C.
ADNT stands above SHYF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADNT is the superior value option right now.