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TTDKY vs. OSIS: Which Stock Is the Better Value Option?

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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with TDK Corp. (TTDKY - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, TDK Corp. is sporting a Zacks Rank of #2 (Buy), while OSI Systems has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TTDKY likely has seen a stronger improvement to its earnings outlook than OSIS has recently. But this is just one factor that value investors are interested in.

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 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.

TTDKY currently has a forward P/E ratio of 21.64, while OSIS has a forward P/E of 24.37. We also note that TTDKY has a PEG ratio of 1.62. 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. OSIS currently has a PEG ratio of 2.13.

Another notable valuation metric for TTDKY is its P/B ratio of 2.28. 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, OSIS has a P/B of 4.4.

These are just a few of the metrics contributing to TTDKY's Value grade of A and OSIS's Value grade of C.

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


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