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OSIS vs. OLED: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, OSI Systems is sporting a Zacks Rank of #1 (Strong Buy), while Universal Display Corp. has a Zacks Rank of #4 (Sell). This means that OSIS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OSIS currently has a forward P/E ratio of 14.75, while OLED has a forward P/E of 44.19. We also note that OSIS has a PEG ratio of 0.82. 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 1.47.
Another notable valuation metric for OSIS is its P/B ratio of 2.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OLED has a P/B of 8.13.
These are just a few of the metrics contributing to OSIS's Value grade of A and OLED's Value grade of F.
OSIS stands above OLED thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSIS is the superior value option right now.
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OSIS vs. OLED: Which Stock Should Value Investors Buy Now?
Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, OSI Systems is sporting a Zacks Rank of #1 (Strong Buy), while Universal Display Corp. has a Zacks Rank of #4 (Sell). This means that OSIS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OSIS currently has a forward P/E ratio of 14.75, while OLED has a forward P/E of 44.19. We also note that OSIS has a PEG ratio of 0.82. 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 1.47.
Another notable valuation metric for OSIS is its P/B ratio of 2.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OLED has a P/B of 8.13.
These are just a few of the metrics contributing to OSIS's Value grade of A and OLED's Value grade of F.
OSIS stands above OLED thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OSIS is the superior value option right now.