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CTTAY or MBLY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Continental AG has a Zacks Rank of #2 (Buy), while Mobileye Global 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 CTTAY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

CTTAY currently has a forward P/E ratio of 6.94, while MBLY has a forward P/E of 44.28. We also note that CTTAY has a PEG ratio of 0.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MBLY currently has a PEG ratio of 6.47.

Another notable valuation metric for CTTAY is its P/B ratio of 0.87. 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 1.11.

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

CTTAY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CTTAY is likely the superior value option right now.


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