SHYF vs. RACE: Which Stock Is the Better Value Option?

Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either The Shyft Group (SHYF) or 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, The Shyft Group is sporting a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SHYF 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

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.

SHYF currently has a forward P/E ratio of 17.42, while RACE has a forward P/E of 62.94. We also note that SHYF has a PEG ratio of 0.87. 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. RACE currently has a PEG ratio of 5.40.

Another notable valuation metric for SHYF is its P/B ratio of 4.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RACE has a P/B of 23.73.

These metrics, and several others, help SHYF earn a Value grade of B, while RACE has been given a Value grade of D.

SHYF 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 SHYF is likely the superior value option right now.

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Spartan Motors, Inc. (SHYF) : Free Stock Analysis Report
 
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