Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Strattec Security (STRT) or Mobileye Global (MBLY). 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Strattec Security has a Zacks Rank of #1 (Strong Buy), while Mobileye Global has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that STRT likely has seen a stronger improvement to its earnings outlook than MBLY has recently. 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 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.

STRT currently has a forward P/E ratio of 13.50, while MBLY has a forward P/E of 56.82. We also note that STRT has a PEG ratio of 1.35. 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. MBLY currently has a PEG ratio of 2.22.

Another notable valuation metric for STRT is its P/B ratio of 0.91. 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 1.12.

These metrics, and several others, help STRT earn a Value grade of A, while MBLY has been given a Value grade of D.

STRT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that STRT is likely the superior value option right now.

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Strattec Security Corporation (STRT) : Free Stock Analysis Report

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