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

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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Oshkosh (OSK - Free Report) and Mobileye Global (MBLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Oshkosh and Mobileye Global are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that OSK likely has seen a stronger improvement to its earnings outlook than MBLY has recently. But this is only part of the picture 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

OSK currently has a forward P/E ratio of 13.30, while MBLY has a forward P/E of 54.82. We also note that OSK has a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MBLY currently has a PEG ratio of 2.55.

Another notable valuation metric for OSK is its P/B ratio of 1.95. 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, MBLY has a P/B of 2.06.

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

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


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Oshkosh Corporation (OSK) - free report >>

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