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

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Investors interested in Automotive - Original Equipment stocks are likely familiar with Oshkosh (OSK - Free Report) and Gentex (GNTX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Oshkosh has a Zacks Rank of #2 (Buy), while Gentex has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that OSK likely has seen a stronger improvement to its earnings outlook than GNTX has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

OSK currently has a forward P/E ratio of 10.06, while GNTX has a forward P/E of 12.93. We also note that OSK has a PEG ratio of 0.89. 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. GNTX currently has a PEG ratio of 1.52.

Another notable valuation metric for OSK is its P/B ratio of 2.18. 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, GNTX has a P/B of 2.95.

These metrics, and several others, help OSK earn a Value grade of B, while GNTX has been given a Value grade of C.

OSK sticks out from GNTX in both our Zacks Rank and Style Scores models, so value investors will likely feel that OSK is the better option right now.


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