OSIS vs. LFUS: Which Stock Is the Better Value Option?
Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with OSI Systems (OSIS) and Littelfuse (LFUS). 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both OSI Systems and Littelfuse have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture 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 19.08, while LFUS has a forward P/E of 33.78. We also note that OSIS has a PEG ratio of 2.12. 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. LFUS currently has a PEG ratio of 2.82.
Another notable valuation metric for OSIS is its P/B ratio of 3.02. 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, LFUS has a P/B of 3.99.
Based on these metrics and many more, OSIS holds a Value grade of B, while LFUS has a Value grade of D.
Both OSIS and LFUS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OSIS is the superior value option right now.
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OSI Systems, Inc. (OSIS) : Free Stock Analysis Report
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