Investors interested in Automotive - Original Equipment stocks are likely familiar with Continental AG (CTTAY) and Mobileye Global (MBLY). 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 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.

Currently, Continental AG has a Zacks Rank of #2 (Buy), while Mobileye Global 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 CTTAY has an improving earnings outlook. But this is only part of the picture 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CTTAY currently has a forward P/E ratio of 10.53, while MBLY has a forward P/E of 79.08. We also note that CTTAY has a PEG ratio of 0.39. 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. MBLY currently has a PEG ratio of 11.56.

Another notable valuation metric for CTTAY is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MBLY has a P/B of 1.18.

These are just a few of the metrics contributing to CTTAY's Value grade of A and MBLY's Value grade of D.

CTTAY stands above MBLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CTTAY is the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Continental AG (CTTAY) : Free Stock Analysis Report

Mobileye Global Inc. (MBLY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research