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BDX vs. MMSI: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Becton Dickinson (BDX - Free Report) and Merit Medical (MMSI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Becton Dickinson is sporting a Zacks Rank of #2 (Buy), while Merit Medical has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BDX has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
BDX currently has a forward P/E ratio of 18.63, while MMSI has a forward P/E of 21.84. We also note that BDX has a PEG ratio of 1.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MMSI currently has a PEG ratio of 2.02.
Another notable valuation metric for BDX is its P/B ratio of 2.75. 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, MMSI has a P/B of 3.47.
Based on these metrics and many more, BDX holds a Value grade of B, while MMSI has a Value grade of C.
BDX sticks out from MMSI in both our Zacks Rank and Style Scores models, so value investors will likely feel that BDX is the better option right now.
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BDX vs. MMSI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Becton Dickinson (BDX - Free Report) and Merit Medical (MMSI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Becton Dickinson is sporting a Zacks Rank of #2 (Buy), while Merit Medical has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BDX has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
BDX currently has a forward P/E ratio of 18.63, while MMSI has a forward P/E of 21.84. We also note that BDX has a PEG ratio of 1.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MMSI currently has a PEG ratio of 2.02.
Another notable valuation metric for BDX is its P/B ratio of 2.75. 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, MMSI has a P/B of 3.47.
Based on these metrics and many more, BDX holds a Value grade of B, while MMSI has a Value grade of C.
BDX sticks out from MMSI in both our Zacks Rank and Style Scores models, so value investors will likely feel that BDX is the better option right now.