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APTV vs. CART: Which Stock Is the Better Value Option?

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Investors with an interest in Technology Services stocks have likely encountered both Aptiv PLC (APTV - Free Report) and Maplebear (CART - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Right now, both Aptiv PLC and Maplebear are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

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.

APTV currently has a forward P/E ratio of 13.73, while CART has a forward P/E of 31.74. We also note that APTV has a PEG ratio of 0.66. 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. CART currently has a PEG ratio of 1.16.

Another notable valuation metric for APTV is its P/B ratio of 1.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CART has a P/B of 2.74.

These are just a few of the metrics contributing to APTV's Value grade of A and CART's Value grade of C.

Both APTV and CART are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that APTV is the superior value option right now.


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