Yahoo Finance SHYF vs. RACE: Which Stock Is the Better Value Option?
Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of The Shyft Group (SHYF) 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.
Right now, The Shyft Group is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SHYF has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
SHYF currently has a forward P/E ratio of 19.17, while RACE has a forward P/E of 64.26. We also note that SHYF has a PEG ratio of 0.96. 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. RACE currently has a PEG ratio of 4.86.
Another notable valuation metric for SHYF is its P/B ratio of 4.54. 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 21.91.
Based on these metrics and many more, SHYF holds a Value grade of B, while RACE has a Value grade of D.
SHYF stands above RACE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SHYF is the superior value option right now.
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The Shyft Group, Inc. (SHYF) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
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