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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Oshkosh (OSK) and NIU TECHADR (NIU). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, Oshkosh is sporting a Zacks Rank of #1 (Strong Buy), while NIU TECHADR has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSK is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
OSK currently has a forward P/E ratio of 18.24, while NIU has a forward P/E of 48.94. We also note that OSK has a PEG ratio of 1.12. 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. NIU currently has a PEG ratio of 1.63.
Another notable valuation metric for OSK is its P/B ratio of 2.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NIU has a P/B of 15.34.
Based on these metrics and many more, OSK holds a Value grade of B, while NIU has a Value grade of D.
OSK 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 OSK is likely the superior value option right now.
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Oshkosh Corporation (OSK) : Free Stock Analysis Report
NIU TECHADR (NIU) : Free Stock Analysis Report
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