Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either OSI Systems (OSIS) or nVent Electric (NVT). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

OSI Systems has a Zacks Rank of #2 (Buy), while nVent Electric has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that OSIS likely has seen a stronger improvement to its earnings outlook than NVT has recently. But this is just one piece of the puzzle for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

OSIS currently has a forward P/E ratio of 16.52, while NVT has a forward P/E of 29.18. We also note that OSIS has a PEG ratio of 1.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVT currently has a PEG ratio of 3.75.

Another notable valuation metric for OSIS is its P/B ratio of 3.20. 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, NVT has a P/B of 3.65.

Based on these metrics and many more, OSIS holds a Value grade of B, while NVT has a Value grade of D.

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

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