Advertisement
Australia markets open in 9 hours 54 minutes

  • ALL ORDS

    7,937.50
    -0.40 (-0.01%)
     

  • AUD/USD

    0.6489
    -0.0011 (-0.17%)
     

  • ASX 200

    7,683.00
    -0.50 (-0.01%)
     

  • OIL

    82.35
    -0.46 (-0.56%)
     

  • GOLD

    2,330.50
    -7.90 (-0.34%)
     

  • Bitcoin AUD

    97,773.89
    -4,157.71 (-4.08%)
     

  • CMC Crypto 200

    1,370.75
    -11.82 (-0.85%)
     

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

Zacks Equity Research

Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Modine (MOD) and Oshkosh (OSK). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Modine and Oshkosh are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MOD has an improving earnings outlook. 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.

ADVERTISEMENT

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.

MOD currently has a forward P/E ratio of 3.35, while OSK has a forward P/E of 12.11. We also note that MOD has a PEG ratio of 0.34. 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. OSK currently has a PEG ratio of 1.37.

Another notable valuation metric for MOD is its P/B ratio of 0.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, OSK has a P/B of 1.58.

These are just a few of the metrics contributing to MOD's Value grade of A and OSK's Value grade of C.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
 
Oshkosh Corporation (OSK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.