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XRAY vs. COO: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Dentsply International (XRAY - Free Report) or The Cooper Companies (COO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Dentsply International is sporting a Zacks Rank of #2 (Buy), while The Cooper Companies has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that XRAY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

XRAY currently has a forward P/E ratio of 19.98, while COO has a forward P/E of 31.13. We also note that XRAY has a PEG ratio of 0.90. 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. COO currently has a PEG ratio of 2.83.

Another notable valuation metric for XRAY is its P/B ratio of 2.48. 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, COO has a P/B of 3.02.

Based on these metrics and many more, XRAY holds a Value grade of B, while COO has a Value grade of C.

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


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DENTSPLY SIRONA Inc. (XRAY) - free report >>

The Cooper Companies, Inc. (COO) - free report >>

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