Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both OSI Systems (OSIS) and 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

OSI Systems has a Zacks Rank of #2 (Buy), while nVent Electric has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OSIS has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 17.87, while NVT has a forward P/E of 23.51. We also note that OSIS has a PEG ratio of 1.39. 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. NVT currently has a PEG ratio of 3.26.

Another notable valuation metric for OSIS is its P/B ratio of 3.47. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NVT has a P/B of 3.53.

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

OSIS has seen stronger estimate revision activity and sports more attractive valuation metrics than NVT, so it seems like value investors will conclude that OSIS is the superior option right now.

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