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

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either OSI Systems (OSIS - Free Report) or CalAmp (CAMP - 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, OSI Systems has a Zacks Rank of #2 (Buy), while CalAmp has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OSIS likely has seen a stronger improvement to its earnings outlook than CAMP has recently. But this is just one piece of the puzzle 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.

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 16.30, while CAMP has a forward P/E of 25.31. We also note that OSIS has a PEG ratio of 1.81. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CAMP currently has a PEG ratio of 2.11.

Another notable valuation metric for OSIS is its P/B ratio of 2.65. 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, CAMP has a P/B of 4.20.

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

OSIS stands above CAMP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSIS is the superior value option right now.


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