Yahoo Finance APTV or RKT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either Aptiv PLC (APTV) or Rocket Companies (RKT). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Aptiv PLC and Rocket Companies 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 APTV has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
APTV currently has a forward P/E ratio of 13.93, while RKT has a forward P/E of 45.40. We also note that APTV has a PEG ratio of 0.85. 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. RKT currently has a PEG ratio of 9.08.
Another notable valuation metric for APTV is its P/B ratio of 2. 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, RKT has a P/B of 3.20.
Based on these metrics and many more, APTV holds a Value grade of A, while RKT has a Value grade of C.
APTV has seen stronger estimate revision activity and sports more attractive valuation metrics than RKT, so it seems like value investors will conclude that APTV is the superior option right now.
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Aptiv PLC (APTV) : Free Stock Analysis Report
Rocket Companies, Inc. (RKT) : Free Stock Analysis Report
