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MOD vs. GNTX: Which Stock Is the Better Value Option?
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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Modine (MOD - Free Report) and Gentex (GNTX - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Modine is sporting a Zacks Rank of #2 (Buy), while Gentex has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that MOD likely has seen a stronger improvement to its earnings outlook than GNTX has recently. But this is just one piece of the puzzle for value investors.
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.
MOD currently has a forward P/E ratio of 11.56, while GNTX has a forward P/E of 19.82. We also note that MOD has a PEG ratio of 0.46. 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 1.20.
Another notable valuation metric for MOD is its P/B ratio of 2.35. 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, GNTX has a P/B of 3.16.
These metrics, and several others, help MOD earn a Value grade of A, while GNTX has been given a Value grade of D.
MOD has seen stronger estimate revision activity and sports more attractive valuation metrics than GNTX, so it seems like value investors will conclude that MOD is the superior option right now.
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MOD vs. GNTX: Which Stock Is the Better Value Option?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Modine (MOD - Free Report) and Gentex (GNTX - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Modine is sporting a Zacks Rank of #2 (Buy), while Gentex has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that MOD likely has seen a stronger improvement to its earnings outlook than GNTX has recently. But this is just one piece of the puzzle for value investors.
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.
MOD currently has a forward P/E ratio of 11.56, while GNTX has a forward P/E of 19.82. We also note that MOD has a PEG ratio of 0.46. 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 1.20.
Another notable valuation metric for MOD is its P/B ratio of 2.35. 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, GNTX has a P/B of 3.16.
These metrics, and several others, help MOD earn a Value grade of A, while GNTX has been given a Value grade of D.
MOD has seen stronger estimate revision activity and sports more attractive valuation metrics than GNTX, so it seems like value investors will conclude that MOD is the superior option right now.