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HOG vs. FOXF: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Automotive - Domestic sector might want to consider either Harley-Davidson (HOG - Free Report) or Fox Factory Holding (FOXF - Free Report) . 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.

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.

Harley-Davidson and Fox Factory Holding are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

HOG currently has a forward P/E ratio of 12.32, while FOXF has a forward P/E of 36.38. We also note that HOG has a PEG ratio of 0.50. 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. FOXF currently has a PEG ratio of 1.88.

Another notable valuation metric for HOG is its P/B ratio of 2.85. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FOXF has a P/B of 8.35.

Based on these metrics and many more, HOG holds a Value grade of A, while FOXF has a Value grade of F.

Both HOG and FOXF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HOG is the superior value option right now.


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Harley-Davidson, Inc. (HOG) - free report >>

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