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CVGI or RACE: Which Is the Better Value Stock Right Now?

Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Commercial Vehicle Group (CVGI) and Ferrari (RACE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Commercial Vehicle Group has a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #5 (Strong Sell) right now. This means that CVGI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CVGI currently has a forward P/E ratio of 7.18, while RACE has a forward P/E of 37.38. We also note that CVGI has a PEG ratio of 0.37. 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. RACE currently has a PEG ratio of 3.37.

Another notable valuation metric for CVGI is its P/B ratio of 1.71. 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, RACE has a P/B of 13.43.

These metrics, and several others, help CVGI earn a Value grade of A, while RACE has been given a Value grade of D.

CVGI sticks out from RACE in both our Zacks Rank and Style Scores models, so value investors will likely feel that CVGI is the better option right now.


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Commercial Vehicle Group, Inc. (CVGI) : Free Stock Analysis Report
 
Ferrari N.V. (RACE) : Free Stock Analysis Report
 
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