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OSK vs. MBLY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Oshkosh (OSK - Free Report) and Mobileye Global (MBLY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.

Oshkosh and Mobileye Global are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OSK is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

OSK currently has a forward P/E ratio of 10.67, while MBLY has a forward P/E of 52.46. We also note that OSK has a PEG ratio of 0.22. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MBLY currently has a PEG ratio of 2.98.

Another notable valuation metric for OSK is its P/B ratio of 1.82. 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, MBLY has a P/B of 2.18.

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

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


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