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OSK or DRVN: Which Is the Better Value Stock Right Now?

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Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Oshkosh (OSK - Free Report) and Driven Brands Holdings Inc. (DRVN - 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.

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

Right now, Oshkosh is sporting a Zacks Rank of #2 (Buy), while Driven Brands Holdings Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OSK likely has seen a stronger improvement to its earnings outlook than DRVN has recently. But this is just one piece of the puzzle 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 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.

OSK currently has a forward P/E ratio of 12.28, while DRVN has a forward P/E of 22.52. We also note that OSK has a PEG ratio of 0.35. 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. DRVN currently has a PEG ratio of 3.68.

Another notable valuation metric for OSK is its P/B ratio of 1.50. 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, DRVN has a P/B of 2.72.

Based on these metrics and many more, OSK holds a Value grade of A, while DRVN has a Value grade of C.

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


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Oshkosh Corporation (OSK) - free report >>

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