VLVLY or GNTX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of AB Volvo (VLVLY) and Gentex (GNTX). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, AB Volvo has a Zacks Rank of #2 (Buy), while Gentex has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VLVLY has an improving earnings outlook. But this is only part of the picture 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.
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.
VLVLY currently has a forward P/E ratio of 8.06, while GNTX has a forward P/E of 17.32. We also note that VLVLY has a PEG ratio of 0.48. 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. GNTX currently has a PEG ratio of 0.77.
Another notable valuation metric for VLVLY is its P/B ratio of 2.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GNTX has a P/B of 3.23.
These metrics, and several others, help VLVLY earn a Value grade of A, while GNTX has been given a Value grade of C.
VLVLY stands above GNTX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VLVLY is the superior value option right now.
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AB Volvo (VLVLY) : Free Stock Analysis Report
Gentex Corporation (GNTX) : Free Stock Analysis Report
