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PROPERTY:

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Ever thought about what a multimillion pound budget would buy you?

STLA vs. POAHY: Which Stock Is the Better Value Option?

Zacks Equity Research
·2-min read

Investors interested in stocks from the Automotive - Foreign sector have probably already heard of Stellantis (STLA) and Porsche Automobil Holding SE Unsponsored ADR (POAHY). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Stellantis and Porsche Automobil Holding SE Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STLA 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 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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The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

STLA currently has a forward P/E ratio of 3.31, while POAHY has a forward P/E of 4.10. We also note that STLA has a PEG ratio of 0.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. POAHY currently has a PEG ratio of 2.87.

Another notable valuation metric for STLA is its P/B ratio of 0.44. 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, POAHY has a P/B of 0.51.

These metrics, and several others, help STLA earn a Value grade of A, while POAHY has been given a Value grade of C.

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


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Stellantis N.V. (STLA) : Free Stock Analysis Report
 
Porsche Automobil Holding SE Unsponsored ADR (POAHY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.