VLEEY or MBLY: 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) and Mobileye Global (MBLY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Valeo S.A. is sporting a Zacks Rank of #2 (Buy), while Mobileye Global has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VLEEY is likely seeing its earnings outlook improve to a greater extent. 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.
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.
VLEEY currently has a forward P/E ratio of 8.55, while MBLY has a forward P/E of 54.57. We also note that VLEEY has a PEG ratio of 0.18. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MBLY currently has a PEG ratio of 7.98.
Another notable valuation metric for VLEEY is its P/B ratio of 0.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MBLY has a P/B of 0.67.
These are just a few of the metrics contributing to VLEEY's Value grade of A and MBLY's Value grade of D.
VLEEY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VLEEY is likely the superior value option right now.
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Valeo S.A. (VLEEY) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report