Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either Oshkosh (OSK) or Ferrari (RACE). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Oshkosh has a Zacks Rank of #2 (Buy), while Ferrari has a Zacks Rank of #3 (Hold) right now. This means that OSK'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 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 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 10.06, while RACE has a forward P/E of 55.26. We also note that OSK has a PEG ratio of 1.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RACE currently has a PEG ratio of 4.45.

Another notable valuation metric for OSK is its P/B ratio of 1.73. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RACE has a P/B of 33.68.

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

OSK sticks out from RACE 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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Oshkosh Corporation (OSK) : Free Stock Analysis Report

Ferrari N.V. (RACE) : Free Stock Analysis Report

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