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APELY or OSIS: Which Is the Better Value Stock Right Now?

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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Alps Electric (APELY - Free Report) and OSI Systems (OSIS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Alps Electric is sporting a Zacks Rank of #2 (Buy), while OSI Systems has a Zacks Rank of #3 (Hold). This means that APELY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

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.

APELY currently has a forward P/E ratio of 16.63, while OSIS has a forward P/E of 23.18. We also note that APELY has a PEG ratio of 0.43. 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. OSIS currently has a PEG ratio of 1.96.

Another notable valuation metric for APELY is its P/B ratio of 0.72. 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, OSIS has a P/B of 4.12.

These metrics, and several others, help APELY earn a Value grade of A, while OSIS has been given a Value grade of C.

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


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