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

Core Viewpoint - The comparison between Continental AG (CTTAY) and Ferrari (RACE) indicates that CTTAY is currently the more attractive option for value investors based on various valuation metrics [1][7]. Valuation Metrics - CTTAY has a forward P/E ratio of 9.70, while RACE has a significantly higher forward P/E of 49.87 [5]. - The PEG ratio for CTTAY is 0.72, indicating it is undervalued relative to its expected earnings growth, whereas RACE has a PEG ratio of 5.61, suggesting it is overvalued [5]. - CTTAY's P/B ratio stands at 1.13, compared to RACE's P/B ratio of 30.81, further highlighting CTTAY's relative undervaluation [6]. Earnings Outlook - Both CTTAY and RACE have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - Despite both companies having solid earnings prospects, the valuation metrics suggest that CTTAY is the superior value option at this time [7].