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OSAGF vs. CTRL: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both Osram Licht AG (OSAGF - Free Report) and Control4 . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Osram Licht AG has a Zacks Rank of #2 (Buy), while Control4 has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSAGF is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 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.

OSAGF currently has a forward P/E ratio of 13.30, while CTRL has a forward P/E of 37.95. We also note that OSAGF has a PEG ratio of 0.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CTRL currently has a PEG ratio of 3.61.

Another notable valuation metric for OSAGF is its P/B ratio of 1.63. 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, CTRL has a P/B of 5.29.

Based on these metrics and many more, OSAGF holds a Value grade of B, while CTRL has a Value grade of D.

OSAGF stands above CTRL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSAGF is the superior value option right now.


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