U.S. Markets closed
  • S&P 500

    3,941.26
    -57.58 (-1.44%)
     
  • Dow 30

    33,596.34
    -350.76 (-1.03%)
     
  • Nasdaq

    11,014.89
    -225.05 (-2.00%)
     
  • Russell 2000

    1,812.58
    -27.65 (-1.50%)
     
  • Crude Oil

    74.45
    -2.48 (-3.22%)
     
  • Gold

    1,783.30
    +2.00 (+0.11%)
     
  • Silver

    22.35
    -0.07 (-0.30%)
     
  • EUR/USD

    1.0469
    -0.0029 (-0.2722%)
     
  • 10-Yr Bond

    3.5130
    -0.0860 (-2.39%)
     
  • Vix

    22.17
    +1.42 (+6.84%)
     
  • GBP/USD

    1.2133
    -0.0061 (-0.4999%)
     
  • USD/JPY

    136.9780
    +0.2930 (+0.2144%)
     
  • BTC-USD

    16,992.18
    +29.33 (+0.17%)
     
  • CMC Crypto 200

    400.49
    -1.32 (-0.33%)
     
  • FTSE 100

    7,521.39
    -46.15 (-0.61%)
     
  • Nikkei 225

    27,885.87
    +65.47 (+0.24%)
     

OSIS vs. CAMP: Which Stock Is the Better Value Option?

Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both OSI Systems (OSIS) and CalAmp (CAMP). 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

OSI Systems has a Zacks Rank of #2 (Buy), while CalAmp has a Zacks Rank of #3 (Hold) right now. 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.

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.

OSIS currently has a forward P/E ratio of 16.92, while CAMP has a forward P/E of 25.38. We also note that OSIS has a PEG ratio of 1.88. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAMP currently has a PEG ratio of 2.11.

Another notable valuation metric for OSIS is its P/B ratio of 2.75. 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, CAMP has a P/B of 4.21.

These are just a few of the metrics contributing to OSIS's Value grade of B and CAMP's Value grade of C.

OSIS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OSIS is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
OSI Systems, Inc. (OSIS) : Free Stock Analysis Report
 
CalAmp Corp. (CAMP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.