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PDCO or XRAY: Which Is the Better Value Stock Right Now?
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Investors interested in Medical - Dental Supplies stocks are likely familiar with Patterson Cos. (PDCO - Free Report) and Dentsply International (XRAY - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Patterson Cos. is sporting a Zacks Rank of #2 (Buy), while Dentsply International has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PDCO is likely seeing its earnings outlook improve to a greater extent. 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.
PDCO currently has a forward P/E ratio of 13.85, while XRAY has a forward P/E of 18.10. We also note that PDCO has a PEG ratio of 1.67. 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. XRAY currently has a PEG ratio of 2.17.
Another notable valuation metric for PDCO is its P/B ratio of 1.55. 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, XRAY has a P/B of 1.69.
These are just a few of the metrics contributing to PDCO's Value grade of A and XRAY's Value grade of C.
PDCO stands above XRAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PDCO is the superior value option right now.
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PDCO or XRAY: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Dental Supplies stocks are likely familiar with Patterson Cos. (PDCO - Free Report) and Dentsply International (XRAY - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Patterson Cos. is sporting a Zacks Rank of #2 (Buy), while Dentsply International has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PDCO is likely seeing its earnings outlook improve to a greater extent. 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.
PDCO currently has a forward P/E ratio of 13.85, while XRAY has a forward P/E of 18.10. We also note that PDCO has a PEG ratio of 1.67. 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. XRAY currently has a PEG ratio of 2.17.
Another notable valuation metric for PDCO is its P/B ratio of 1.55. 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, XRAY has a P/B of 1.69.
These are just a few of the metrics contributing to PDCO's Value grade of A and XRAY's Value grade of C.
PDCO stands above XRAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PDCO is the superior value option right now.