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

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Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Continental AG (CTTAY - Free Report) and Mobileye Global (MBLY - Free Report) . 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Continental AG and Mobileye Global 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 CTTAY has an improving earnings outlook. 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.

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.

CTTAY currently has a forward P/E ratio of 9.47, while MBLY has a forward P/E of 81.43. We also note that CTTAY has a PEG ratio of 0.40. 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 11.90.

Another notable valuation metric for CTTAY is its P/B ratio of 0.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MBLY has a P/B of 1.21.

These are just a few of the metrics contributing to CTTAY's Value grade of A and MBLY's Value grade of F.

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


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Continental AG (CTTAY) - free report >>

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