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

By Zacks Equity Research | July 04, 2025, 11:40 AM

Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Strattec Security (STRT) or Mobileye Global (MBLY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Strattec Security is sporting a Zacks Rank of #1 (Strong Buy), while Mobileye Global has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STRT 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

STRT currently has a forward P/E ratio of 14.73, while MBLY has a forward P/E of 67.84. We also note that STRT has a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MBLY currently has a PEG ratio of 3.50.

Another notable valuation metric for STRT is its P/B ratio of 1.24. 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, MBLY has a P/B of 1.29.

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

STRT sticks out from MBLY in both our Zacks Rank and Style Scores models, so value investors will likely feel that STRT is the better option right now.

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Strattec Security Corporation (STRT): Free Stock Analysis Report
 
Mobileye Global Inc. (MBLY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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