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OSIS vs. NVT: Which Stock Is the Better Value Option?
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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both OSI Systems (OSIS - Free Report) and nVent Electric (NVT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
OSI Systems has a Zacks Rank of #2 (Buy), while nVent Electric has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OSIS has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 16.38, while NVT has a forward P/E of 22.51. We also note that OSIS has a PEG ratio of 1.39. 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. NVT currently has a PEG ratio of 1.50.
Another notable valuation metric for OSIS is its P/B ratio of 2.91. 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, NVT has a P/B of 3.71.
These metrics, and several others, help OSIS earn a Value grade of B, while NVT has been given a Value grade of C.
OSIS sticks out from NVT in both our Zacks Rank and Style Scores models, so value investors will likely feel that OSIS is the better option right now.
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OSIS vs. NVT: Which Stock Is the Better Value Option?
Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both OSI Systems (OSIS - Free Report) and nVent Electric (NVT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
OSI Systems has a Zacks Rank of #2 (Buy), while nVent Electric has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OSIS has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 16.38, while NVT has a forward P/E of 22.51. We also note that OSIS has a PEG ratio of 1.39. 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. NVT currently has a PEG ratio of 1.50.
Another notable valuation metric for OSIS is its P/B ratio of 2.91. 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, NVT has a P/B of 3.71.
These metrics, and several others, help OSIS earn a Value grade of B, while NVT has been given a Value grade of C.
OSIS sticks out from NVT in both our Zacks Rank and Style Scores models, so value investors will likely feel that OSIS is the better option right now.