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VLVLY or DRVN: Which Is the Better Value Stock Right Now?
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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both AB Volvo (VLVLY - Free Report) and Driven Brands Holdings Inc. (DRVN - 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.
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 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.
AB Volvo has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VLVLY likely has seen a stronger improvement to its earnings outlook than DRVN has recently. But this is only part of the picture 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.
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 10.93, while DRVN has a forward P/E of 22.98. We also note that VLVLY has a PEG ratio of 0.69. 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. DRVN currently has a PEG ratio of 1.30.
Another notable valuation metric for VLVLY is its P/B ratio of 2.30. 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, DRVN has a P/B of 2.85.
These are just a few of the metrics contributing to VLVLY's Value grade of A and DRVN's Value grade of C.
VLVLY sticks out from DRVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLVLY is the better option right now.
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VLVLY or DRVN: Which Is the Better Value Stock Right Now?
Investors with an interest in Automotive - Original Equipment stocks have likely encountered both AB Volvo (VLVLY - Free Report) and Driven Brands Holdings Inc. (DRVN - 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.
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 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.
AB Volvo has a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VLVLY likely has seen a stronger improvement to its earnings outlook than DRVN has recently. But this is only part of the picture 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.
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 10.93, while DRVN has a forward P/E of 22.98. We also note that VLVLY has a PEG ratio of 0.69. 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. DRVN currently has a PEG ratio of 1.30.
Another notable valuation metric for VLVLY is its P/B ratio of 2.30. 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, DRVN has a P/B of 2.85.
These are just a few of the metrics contributing to VLVLY's Value grade of A and DRVN's Value grade of C.
VLVLY sticks out from DRVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLVLY is the better option right now.