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BWA vs. OSK: Which Stock Is the Better Value Option?
BorgWarnerBorgWarner(US:BWA) ZACKSยท2024-10-11 16:40

Core Insights - The article compares two stocks in the Automotive - Original Equipment sector: BorgWarner (BWA) and Oshkosh (OSK), focusing on which stock is more attractive to value investors [1] Valuation Metrics - BorgWarner has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Oshkosh has a Zacks Rank of 5 (Strong Sell), suggesting a less favorable outlook [3] - BWA's forward P/E ratio is 8.51, compared to OSK's forward P/E of 8.69, indicating that BWA may be undervalued relative to OSK [5] - The PEG ratio for BWA is 0.80, while OSK's PEG ratio is 0.97, suggesting BWA has a better valuation considering expected earnings growth [5] - BWA's P/B ratio is 1.26, while OSK's P/B ratio is 1.65, further indicating that BWA is more attractively valued [6] - Overall, BWA has a Value grade of A, while OSK has a Value grade of C, reflecting stronger valuation metrics for BWA [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, BWA is positioned as the superior option for value investors compared to OSK [7]