DAN or GNTX: Which Is the Better Value Stock Right Now?

Investors interested in Automotive - Original Equipment stocks are likely familiar with Dana (DAN) and Gentex (GNTX). 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Dana is sporting a Zacks Rank of #2 (Buy), while Gentex has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DAN is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

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.

DAN currently has a forward P/E ratio of 5.66, while GNTX has a forward P/E of 12.77. We also note that DAN has a PEG ratio of 1.29. 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. GNTX currently has a PEG ratio of 1.50.

Another notable valuation metric for DAN is its P/B ratio of 1.87. 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, GNTX has a P/B of 2.91.

These are just a few of the metrics contributing to DAN's Value grade of A and GNTX's Value grade of C.

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

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Dana Incorporated (DAN) : Free Stock Analysis Report
 
Gentex Corporation (GNTX) : Free Stock Analysis Report
 
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