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

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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Oshkosh (OSK - Free Report) or Gentex (GNTX - Free Report) . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Oshkosh has a Zacks Rank of #2 (Buy), while Gentex has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OSK has an improving earnings outlook. But this is only part of the picture for value investors.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

OSK currently has a forward P/E ratio of 8.58, while GNTX has a forward P/E of 12.13. We also note that OSK has a PEG ratio of 0.59. 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. GNTX currently has a PEG ratio of 1.08.

Another notable valuation metric for OSK is its P/B ratio of 1.75. 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, GNTX has a P/B of 2.84.

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

OSK has seen stronger estimate revision activity and sports more attractive valuation metrics than GNTX, so it seems like value investors will conclude that OSK is the superior option right now.


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