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STRT vs. MBLY: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Strattec Security (STRT - Free Report) or Mobileye Global (MBLY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Strattec Security has a Zacks Rank of #1 (Strong Buy), while Mobileye Global has a Zacks Rank of #4 (Sell). This means that STRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

STRT currently has a forward P/E ratio of 17.50, while MBLY has a forward P/E of 63.34. We also note that STRT has a PEG ratio of 1.75. 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 9.26.

Another notable valuation metric for STRT is its P/B ratio of 0.64. 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, MBLY has a P/B of 0.77.

Based on these metrics and many more, STRT holds a Value grade of B, while MBLY has a Value grade of F.

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


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Strattec Security Corporation (STRT) - free report >>

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