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PUGOY vs. ATDRY: Which Stock Should Value Investors Buy Now?

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Investors interested in Automotive - Foreign stocks are likely familiar with PEUGEOT SA and Auto Trader Group (ATDRY - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, PEUGEOT SA has a Zacks Rank of #1 (Strong Buy), while Auto Trader Group has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PUGOY is likely seeing its earnings outlook improve to a greater extent. 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 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.

PUGOY currently has a forward P/E ratio of 5.76, while ATDRY has a forward P/E of 23.29. We also note that PUGOY has a PEG ratio of 0.37. 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. ATDRY currently has a PEG ratio of 2.77.

Another notable valuation metric for PUGOY is its P/B ratio of 1. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ATDRY has a P/B of 79.80.

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

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


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