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

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Investors interested in Manufacturing - General Industrial stocks are likely familiar with Oshkosh (OSK - Free Report) and Ingersoll Rand (IR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Both Oshkosh and Ingersoll Rand have a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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 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 11.86, while IR has a forward P/E of 24.49. We also note that OSK has a PEG ratio of 1.63. 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. IR currently has a PEG ratio of 4.52.

Another notable valuation metric for OSK is its P/B ratio of 1.86. 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, IR has a P/B of 3.23.

These are just a few of the metrics contributing to OSK's Value grade of B and IR's Value grade of D.

Both OSK and IR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OSK is the superior value option right now.


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