STRT vs. ATMU: Which Stock Is the Better Value Option?

Core Viewpoint - The comparison between Strattec Security (STRT) and Atmus Filtration Technologies (ATMU) indicates that STRT is currently a more attractive option for value investors due to its stronger earnings outlook and better valuation metrics [1][3][6]. Group 1: Zacks Rank and Earnings Outlook - Strattec Security has a Zacks Rank of 2 (Buy), while Atmus Filtration Technologies has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for STRT [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, which STRT currently benefits from [3]. Group 2: Valuation Metrics - STRT has a forward P/E ratio of 14.65, significantly lower than ATMU's forward P/E of 20.68, indicating that STRT may be undervalued relative to ATMU [5]. - STRT's PEG ratio is 1.47, while ATMU's PEG ratio is 2.55, further supporting STRT's position as a better value investment [5]. - STRT's P/B ratio stands at 1.29 compared to ATMU's P/B of 14.14, highlighting STRT's superior valuation metrics [6]. Group 3: Value Grades - STRT has a Value grade of A, while ATMU has a Value grade of C, reinforcing the conclusion that STRT is the superior value option at this time [6].