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

Core Insights - Visteon (VC) is currently rated as a Strong Buy (1) while Ferrari (RACE) holds a Buy (2) rating, indicating a stronger improvement in VC's earnings outlook compared to RACE [3] - Value investors utilize various valuation metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - Visteon has a forward P/E ratio of 14.06, significantly lower than Ferrari's forward P/E of 42.88, suggesting that VC may be more attractively priced [5] - The PEG ratio for Visteon is 4.72, while Ferrari's PEG ratio is slightly higher at 4.82, indicating that both companies have similar expected EPS growth rates [5] - Visteon's P/B ratio stands at 2.17, in stark contrast to Ferrari's P/B ratio of 26.85, further highlighting VC's relative undervaluation [6] Value Grades - Visteon has received a Value grade of A, while Ferrari has a Value grade of F, indicating that VC is perceived as a superior value option based on its solid earnings outlook and favorable valuation metrics [6]