KAR vs. MBLY: Which Stock Is the Better Value Option?
Investors interested in Automotive - Original Equipment stocks are likely familiar with OPENLANE (KAR) and Mobileye Global (MBLY). But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
OPENLANE and Mobileye Global are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that KAR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
KAR currently has a forward P/E ratio of 20.42, while MBLY has a forward P/E of 85. We also note that KAR has a PEG ratio of 0.91. 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 5.10.
Another notable valuation metric for KAR is its P/B ratio of 1.37. 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, MBLY has a P/B of 1.71.
These are just a few of the metrics contributing to KAR's Value grade of A and MBLY's Value grade of D.
KAR has seen stronger estimate revision activity and sports more attractive valuation metrics than MBLY, so it seems like value investors will conclude that KAR is the superior option right now.
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OPENLANE, Inc. (KAR) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report
