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OSIS or NVT: Which Is the Better Value Stock Right Now?

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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with OSI Systems (OSIS - Free Report) and nVent Electric (NVT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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. 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 factor that value investors are interested in.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

OSIS currently has a forward P/E ratio of 14.50, while NVT has a forward P/E of 22.88. We also note that OSIS has a PEG ratio of 1.23. 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 1.52.

Another notable valuation metric for OSIS is its P/B ratio of 2.81. 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, NVT has a P/B of 3.77.

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