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OSK vs. MBLY: Which Stock Should Value Investors Buy Now?

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Investors interested in Automotive - Original Equipment stocks are likely familiar with Oshkosh (OSK - Free Report) and 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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. 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 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.

OSK currently has a forward P/E ratio of 12.36, while MBLY has a forward P/E of 58.88. We also note that OSK has a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MBLY currently has a PEG ratio of 2.74.

Another notable valuation metric for OSK is its P/B ratio of 1.86. 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 2.23.

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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