Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Strattec Security (STRT) and Mobileye Global (MBLY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Strattec Security has a Zacks Rank of #1 (Strong Buy), while Mobileye Global has a Zacks Rank of #4 (Sell). This means that STRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

STRT currently has a forward P/E ratio of 11.91, while MBLY has a forward P/E of 50.54. We also note that STRT has a PEG ratio of 1.19. 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. MBLY currently has a PEG ratio of 1.98.

Another notable valuation metric for STRT is its P/B ratio of 0.80. 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, MBLY has a P/B of 0.97.

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

STRT has seen stronger estimate revision activity and sports more attractive valuation metrics than MBLY, so it seems like value investors will conclude that STRT is the superior option right now.

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Strattec Security Corporation (STRT) : Free Stock Analysis Report

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

This article originally published on Zacks Investment Research (zacks.com).

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