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OSIS vs. OLED: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of OSI Systems (OSIS - Free Report) and Universal Display Corp. (OLED - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
OSI Systems has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that OSIS likely has seen a stronger improvement to its earnings outlook than OLED has recently. 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.
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.
OSIS currently has a forward P/E ratio of 16.50, while OLED has a forward P/E of 38.38. We also note that OSIS has a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OLED currently has a PEG ratio of 2.17.
Another notable valuation metric for OSIS is its P/B ratio of 2.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OLED has a P/B of 6.01.
These metrics, and several others, help OSIS earn a Value grade of A, while OLED has been given a Value grade of C.
OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than OLED, so it seems like value investors will conclude that OSIS is the superior option right now.
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OSIS vs. OLED: Which Stock Is the Better Value Option?
Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of OSI Systems (OSIS - Free Report) and Universal Display Corp. (OLED - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
OSI Systems has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that OSIS likely has seen a stronger improvement to its earnings outlook than OLED has recently. 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.
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.
OSIS currently has a forward P/E ratio of 16.50, while OLED has a forward P/E of 38.38. We also note that OSIS has a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OLED currently has a PEG ratio of 2.17.
Another notable valuation metric for OSIS is its P/B ratio of 2.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OLED has a P/B of 6.01.
These metrics, and several others, help OSIS earn a Value grade of A, while OLED has been given a Value grade of C.
OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than OLED, so it seems like value investors will conclude that OSIS is the superior option right now.