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HOG or FOXF: Which Is the Better Value Stock Right Now?

·2 min read

Investors with an interest in Automotive - Domestic stocks have likely encountered both Harley-Davidson (HOG) and Fox Factory Holding (FOXF). 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Harley-Davidson and Fox Factory Holding are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HOG has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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.

HOG currently has a forward P/E ratio of 8.53, while FOXF has a forward P/E of 20.56. We also note that HOG has a PEG ratio of 0.99. 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. FOXF currently has a PEG ratio of 1.02.

Another notable valuation metric for HOG is its P/B ratio of 2.12. 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, FOXF has a P/B of 4.50.

These are just a few of the metrics contributing to HOG's Value grade of A and FOXF's Value grade of C.

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

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HarleyDavidson, Inc. (HOG) : Free Stock Analysis Report
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
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Zacks Investment Research