OSIS or OLED: Which Is the Better Value Stock Right Now?
Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with OSI Systems (OSIS) and Universal Display Corp. (OLED). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, OSI Systems is sporting a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold). This means that OSIS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
OSIS currently has a forward P/E ratio of 16.33, while OLED has a forward P/E of 37.13. We also note that OSIS has a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OLED currently has a PEG ratio of 1.91.
Another notable valuation metric for OSIS is its P/B ratio of 2.90. 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, OLED has a P/B of 5.71.
Based on these metrics and many more, OSIS holds a Value grade of A, while OLED has a Value grade of C.
OSIS stands above OLED thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSIS is the superior value option right now.
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OSI Systems, Inc. (OSIS) : Free Stock Analysis Report
Universal Display Corporation (OLED) : Free Stock Analysis Report
