Back to top

Image: Bigstock

OSK or MBLY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Oshkosh (OSK - Free Report) or Mobileye Global (MBLY - 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 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.

Oshkosh and Mobileye Global are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, 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. However, value investors will care about much more than just this.

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 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 13.09, while MBLY has a forward P/E of 53.77. We also note that OSK has a PEG ratio of 0.37. 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. MBLY currently has a PEG ratio of 2.50.

Another notable valuation metric for OSK is its P/B ratio of 1.97. 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, MBLY has a P/B of 2.03.

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

OSK sticks out from MBLY in both our Zacks Rank and Style Scores models, so value investors will likely feel that OSK is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Oshkosh Corporation (OSK) - free report >>

Mobileye Global Inc. (MBLY) - free report >>

Published in