Back to top

Image: Bigstock

VLEEY vs. MBLY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Valeo S.A. (VLEEY - Free Report) and Mobileye Global (MBLY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Valeo S.A. and Mobileye Global are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that VLEEY likely has seen a stronger improvement to its earnings outlook than MBLY has recently. 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 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.

VLEEY currently has a forward P/E ratio of 8.23, while MBLY has a forward P/E of 55.20. We also note that VLEEY has a PEG ratio of 0.17. 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. MBLY currently has a PEG ratio of 8.07.

Another notable valuation metric for VLEEY is its P/B ratio of 0.54. 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 0.68.

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

VLEEY stands above MBLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VLEEY is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Valeo S.A. (VLEEY) - free report >>

Mobileye Global Inc. (MBLY) - free report >>

Published in