Investors looking for stocks in the Automotive - Foreign sector might want to consider either Bridgestone Corp. (BRDCY) or Li Auto Inc. Sponsored ADR (LI). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Bridgestone Corp. is sporting a Zacks Rank of #2 (Buy), while Li Auto Inc. Sponsored ADR has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BRDCY has an improving earnings outlook. But this is only part of the picture 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 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.

BRDCY currently has a forward P/E ratio of 11.13, while LI has a forward P/E of 15.56. We also note that BRDCY has a PEG ratio of 2. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LI currently has a PEG ratio of 3.28.

Another notable valuation metric for BRDCY is its P/B ratio of 1.11. 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, LI has a P/B of 2.94.

Based on these metrics and many more, BRDCY holds a Value grade of A, while LI has a Value grade of D.

BRDCY stands above LI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BRDCY is the superior value option right now.

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Bridgestone Corp. (BRDCY):Free Stock Analysis Report

Li Auto Inc. Sponsored ADR (LI):Free Stock Analysis Report

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