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F vs. FOXF: Which Stock Should Value Investors Buy Now?

Zacks Equity Research
·2-min read

Investors interested in Automotive - Domestic stocks are likely familiar with Ford Motor Company (F) and Fox Factory Holding (FOXF). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Ford Motor Company and Fox Factory Holding are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that F has an improving earnings 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.

F currently has a forward P/E ratio of 11.16, while FOXF has a forward P/E of 40.94. We also note that F has a PEG ratio of 0.49. 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. FOXF currently has a PEG ratio of 2.32.

Another notable valuation metric for F is its P/B ratio of 1.62. 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, FOXF has a P/B of 9.

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

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


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Ford Motor Company (F) : Free Stock Analysis Report
 
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research