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VLEEY or MBLY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Valeo S.A. (VLEEY - Free Report) or Mobileye Global (MBLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.

Valeo S.A. has a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VLEEY has an improving earnings outlook. 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.

VLEEY currently has a forward P/E ratio of 6.07, while MBLY has a forward P/E of 79.57. We also note that VLEEY has a PEG ratio of 0.15. 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. MBLY currently has a PEG ratio of 25.06.

Another notable valuation metric for VLEEY is its P/B ratio of 0.67. 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, MBLY has a P/B of 1.54.

These are just a few of the metrics contributing to VLEEY's Value grade of A and MBLY's Value grade of D.

VLEEY has seen stronger estimate revision activity and sports more attractive valuation metrics than MBLY, so it seems like value investors will conclude that VLEEY is the superior option right now.


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Valeo S.A. (VLEEY) - free report >>

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