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MOD or RACE: Which Is the Better Value Stock Right Now?
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Investors interested in Automotive - Original Equipment stocks are likely familiar with Modine (MOD - Free Report) and Ferrari (RACE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Modine has a Zacks Rank of #1 (Strong Buy), while Ferrari has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MOD likely has seen a stronger improvement to its earnings outlook than RACE has recently. But this is just one factor that value investors are interested in.
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.
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.
MOD currently has a forward P/E ratio of 16.97, while RACE has a forward P/E of 45.88. We also note that MOD has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RACE currently has a PEG ratio of 2.92.
Another notable valuation metric for MOD is its P/B ratio of 3.75. 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, RACE has a P/B of 21.26.
These are just a few of the metrics contributing to MOD's Value grade of B and RACE's Value grade of C.
MOD sticks out from RACE in both our Zacks Rank and Style Scores models, so value investors will likely feel that MOD is the better option right now.
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MOD or RACE: Which Is the Better Value Stock Right Now?
Investors interested in Automotive - Original Equipment stocks are likely familiar with Modine (MOD - Free Report) and Ferrari (RACE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Modine has a Zacks Rank of #1 (Strong Buy), while Ferrari has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MOD likely has seen a stronger improvement to its earnings outlook than RACE has recently. But this is just one factor that value investors are interested in.
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.
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.
MOD currently has a forward P/E ratio of 16.97, while RACE has a forward P/E of 45.88. We also note that MOD has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RACE currently has a PEG ratio of 2.92.
Another notable valuation metric for MOD is its P/B ratio of 3.75. 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, RACE has a P/B of 21.26.
These are just a few of the metrics contributing to MOD's Value grade of B and RACE's Value grade of C.
MOD sticks out from RACE in both our Zacks Rank and Style Scores models, so value investors will likely feel that MOD is the better option right now.