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VLVLY vs. DRVN: Which Stock Is the Better Value Option?
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Investors interested in Automotive - Original Equipment stocks are likely familiar with AB Volvo (VLVLY - Free Report) and Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, AB Volvo is sporting a Zacks Rank of #1 (Strong Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VLVLY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VLVLY currently has a forward P/E ratio of 11.62, while DRVN has a forward P/E of 23.12. We also note that VLVLY has a PEG ratio of 0.74. 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. DRVN currently has a PEG ratio of 1.31.
Another notable valuation metric for VLVLY is its P/B ratio of 2.44. 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, DRVN has a P/B of 3.03.
These metrics, and several others, help VLVLY earn a Value grade of A, while DRVN has been given a Value grade of C.
VLVLY stands above DRVN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VLVLY is the superior value option right now.
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VLVLY vs. DRVN: Which Stock Is the Better Value Option?
Investors interested in Automotive - Original Equipment stocks are likely familiar with AB Volvo (VLVLY - Free Report) and Driven Brands Holdings Inc. (DRVN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, AB Volvo is sporting a Zacks Rank of #1 (Strong Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VLVLY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VLVLY currently has a forward P/E ratio of 11.62, while DRVN has a forward P/E of 23.12. We also note that VLVLY has a PEG ratio of 0.74. 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. DRVN currently has a PEG ratio of 1.31.
Another notable valuation metric for VLVLY is its P/B ratio of 2.44. 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, DRVN has a P/B of 3.03.
These metrics, and several others, help VLVLY earn a Value grade of A, while DRVN has been given a Value grade of C.
VLVLY stands above DRVN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VLVLY is the superior value option right now.