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CTTAY vs. MBLY: Which Stock Should Value Investors Buy Now?

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Investors interested in Automotive - Original Equipment stocks are likely familiar with Continental AG (CTTAY - Free Report) and 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.

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.

Currently, Continental AG has a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CTTAY likely has seen a stronger improvement to its earnings outlook than MBLY has recently. But this is just one piece of the puzzle 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.

CTTAY currently has a forward P/E ratio of 9.85, while MBLY has a forward P/E of 76.13. We also note that CTTAY has a PEG ratio of 0.42. 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 11.13.

Another notable valuation metric for CTTAY is its P/B ratio of 0.87. 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 1.12.

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

CTTAY stands above MBLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CTTAY is the superior value option right now.


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