APTV or ATMU: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Automotive - Original Equipment sector may find Aptiv PLC (APTV) and Atmus Filtration Technologies (ATMU) to be attractive options, with APTV appearing to be the superior value choice based on various valuation metrics [1][6]. Group 1: Company Overview - Both APTV and ATMU currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - APTV has a forward P/E ratio of 10.30, while ATMU has a forward P/E of 19.42, suggesting APTV may be undervalued compared to ATMU [5]. - APTV's PEG ratio is 1.00, indicating a favorable growth outlook relative to its price, whereas ATMU's PEG ratio is significantly higher at 3.35 [5]. Group 2: Valuation Metrics - APTV has a P/B ratio of 1.97, which is considerably lower than ATMU's P/B ratio of 13.24, further supporting APTV's position as a more attractive value investment [6]. - Based on the valuation metrics analyzed, APTV receives a Value grade of A, while ATMU is rated C, highlighting APTV's stronger value proposition [6]. - Traditional valuation figures such as P/E ratio, P/S ratio, earnings yield, and cash flow per share are essential for value investors in assessing stock potential [4].