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OSAGF vs. CTRL: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both Osram Licht AG (OSAGF - Free Report) and Control4 . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.

Both Osram Licht AG and Control4 have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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 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.

OSAGF currently has a forward P/E ratio of 13.50, while CTRL has a forward P/E of 24.76. We also note that OSAGF has a PEG ratio of 0.90. 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. CTRL currently has a PEG ratio of 2.15.

Another notable valuation metric for OSAGF is its P/B ratio of 1.65. 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, CTRL has a P/B of 5.34.

Based on these metrics and many more, OSAGF holds a Value grade of B, while CTRL has a Value grade of D.

Both OSAGF and CTRL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OSAGF is the superior value option right now.


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