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OSIS or OLED: Which Is the Better Value Stock Right Now?
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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
OSI Systems and Universal Display Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that OSIS likely has seen a stronger improvement to its earnings outlook than OLED 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.
OSIS currently has a forward P/E ratio of 13.73, while OLED has a forward P/E of 36.69. We also note that OSIS has a PEG ratio of 1.25. 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. OLED currently has a PEG ratio of 2.44.
Another notable valuation metric for OSIS is its P/B ratio of 2.54. 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, OLED has a P/B of 5.04.
Based on these metrics and many more, OSIS holds a Value grade of A, while OLED has a Value grade of C.
OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than OLED, so it seems like value investors will conclude that OSIS is the superior option right now.
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OSIS or OLED: Which Is the Better Value Stock Right Now?
Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
OSI Systems and Universal Display Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that OSIS likely has seen a stronger improvement to its earnings outlook than OLED 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.
OSIS currently has a forward P/E ratio of 13.73, while OLED has a forward P/E of 36.69. We also note that OSIS has a PEG ratio of 1.25. 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. OLED currently has a PEG ratio of 2.44.
Another notable valuation metric for OSIS is its P/B ratio of 2.54. 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, OLED has a P/B of 5.04.
Based on these metrics and many more, OSIS holds a Value grade of A, while OLED has a Value grade of C.
OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than OLED, so it seems like value investors will conclude that OSIS is the superior option right now.