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

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Investors interested in Automotive - Original Equipment stocks are likely familiar with Valeo S.A. (VLEEY - Free Report) and Modine (MOD - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Valeo S.A. is sporting a Zacks Rank of #2 (Buy), while Modine has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that VLEEY likely has seen a stronger improvement to its earnings outlook than MOD has recently. However, value investors will care about much more than just this.

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 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.

VLEEY currently has a forward P/E ratio of 9.19, while MOD has a forward P/E of 28.86. We also note that VLEEY has a PEG ratio of 0.16. 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. MOD currently has a PEG ratio of 0.85.

Another notable valuation metric for VLEEY is its P/B ratio of 0.57. 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, MOD has a P/B of 7.39.

Based on these metrics and many more, VLEEY holds a Value grade of A, while MOD has a Value grade of D.

VLEEY sticks out from MOD in both our Zacks Rank and Style Scores models, so value investors will likely feel that VLEEY is the better option right now.


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