When looking for value opportunities amid capital-intensive businesses, investors may want to look at stocks whose price-to-tangible-book-value ratios are more compelling than their peers.
The price-to-tangible-book-value ratio is preferred to the price-book ratio for these publicly traded companies, as the appraisal of their businesses mainly derives from tangible assets.
Aisin Seiki Co Ltd
The first stock that meets the criteria is Aisin Seiki Co Ltd (ASEKY, Financial), a Japanese manufacturer and seller of automotive parts and related products worldwide.
Aisin Seiki has a price-to-tangible-book-value ratio of 0.77, which appeals more than the industry median of 1.75 and ranks higher than 77% of the 1,075 competitors that operate in the vehicles and parts industry.
The share price was $37 per share as of March 17. The tangible book value per share was approximately $48.25 as of the December 2020 quarter.
The stock price has risen by nearly 65% over the past year, determining a market capitalization of $9.97 billion and a 52-week range of $19.86 to $37.81.
GuruFocus assigned a score of 5 out of 10 for the financial strength rating and 7 out of 10 for the profitability rating of the company.
On Wall Street, the stock has a median recommendation rating of hold and an average target price of $38.02 per share.
Antero Resources Corporation
The second stock that investors may want to consider is Antero Resources Corporation (AR, Financial), a Denver, Colorado-based independent acquirer, explorer and producer of oil and natural gas assets in the U.S.
Antero Resources' price-to-tangible-book-value ratio of 0.48 is more compelling than the industry median of 1.27, ranking higher than 86% of 979 companies that operate in the oil and gas industry.
As of March 17, the stock price was $10.25 per share, while the tangible book value per share was $21.47 as of the December 2020 quarter.
The stock outperformed with a more than 10-fold increase over the past year for a market capitalization of $3.09 billion and a 52-week range of $0.64 to $10.69.
GuruFocus assigned a score of 2 out of 10 for the financial strength rating and 4 out of 10 for the profitability rating of the company.
On Wall Street, the stock has a median recommendation rating of hold and an average target price of $11.38 per share.
Alpha Metallurgical Resources Inc
The third stock that qualifies is Alpha Metallurgical Resources Inc (AMR, Financial), a Bristol, Tennessee-based mining company operating mineral assets in Virginia and West Virginia for the production of metallurgical coal to be supplied to the steel industry.
Alpha Metallurgical Resources' price-to-tangible-book-value ratio of 1.92 is less appealing than the industry median of 1.25 but ranks higher than 69% of 142 companies that operate in the other energy sources industry.
The stock price was trading at $11.73 per share as of March 17, while the tangible book value per share was $6.11 for the December 2020 quarter.
The stock price has risen by 254.4% over the past year, which has determined a market capitalization of $215.71 million and a 52-week range of $11.13 to $17.39.
GuruFocus assigned a score of 3 out of 10 for the financial strength rating and 4 out of 10 for the profitability rating of the company.
On Wall Street, the stock has a median recommendation rating of hold and an average target price of $13 per share.
Disclosure: I have no position in any security mentioned.
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