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

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Investors interested in Automotive - Original Equipment stocks are likely familiar with Oshkosh (OSK - Free Report) and Visteon (VC - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Oshkosh and Visteon are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that OSK likely has seen a stronger improvement to its earnings outlook than VC 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.

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.

OSK currently has a forward P/E ratio of 9.42, while VC has a forward P/E of 13.86. We also note that OSK has a PEG ratio of 0.52. 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. VC currently has a PEG ratio of 0.92.

Another notable valuation metric for OSK is its P/B ratio of 1.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VC has a P/B of 3.89.

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

OSK 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 OSK is likely the superior value option right now.


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