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VLEEY vs. OSK: Which Stock Is the Better Value Option?

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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Valeo S.A. (VLEEY - Free Report) and Oshkosh (OSK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Valeo S.A. is sporting a Zacks Rank of #2 (Buy), while Oshkosh has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VLEEY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

VLEEY currently has a forward P/E ratio of 11.90, while OSK has a forward P/E of 16.01. We also note that VLEEY has a PEG ratio of 0.25. 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. OSK currently has a PEG ratio of 0.44.

Another notable valuation metric for VLEEY is its P/B ratio of 1.15. 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, OSK has a P/B of 1.82.

Based on these metrics and many more, VLEEY holds a Value grade of A, while OSK has a Value grade of C.

VLEEY 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 VLEEY is likely the superior value option right now.


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