Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of OSI Systems (OSIS) and Universal Display Corp. (OLED). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, OSI Systems has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold). This means that OSIS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.

OSIS currently has a forward P/E ratio of 18.76, while OLED has a forward P/E of 31.22. We also note that OSIS has a PEG ratio of 1.46. 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. OLED currently has a PEG ratio of 1.60.

Another notable valuation metric for OSIS is its P/B ratio of 3.64. 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, OLED has a P/B of 4.48.

These are just a few of the metrics contributing to OSIS's Value grade of B and OLED's Value grade of D.

OSIS sticks out from OLED in both our Zacks Rank and Style Scores models, so value investors will likely feel that OSIS is the better 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

OSI Systems, Inc. (OSIS) : Free Stock Analysis Report

Universal Display Corporation (OLED) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research