Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either TE Connectivity (TEL) or OSI Systems (OSIS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

TE Connectivity and OSI Systems are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.

TEL currently has a forward P/E ratio of 18.66, while OSIS has a forward P/E of 24.03. We also note that TEL has a PEG ratio of 2.01. 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. OSIS currently has a PEG ratio of 2.04.

Another notable valuation metric for TEL is its P/B ratio of 3.75. 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, OSIS has a P/B of 4.27.

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

Both TEL and OSIS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TEL is the superior value 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

TE Connectivity Ltd. (TEL):Free Stock Analysis Report

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research