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CKHUY vs. DHR: Which Stock Is the Better Value Option?

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Investors with an interest in Diversified Operations stocks have likely encountered both Ck Hutchison Holdings Ltd (CKHUY - Free Report) and Danaher (DHR - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Ck Hutchison Holdings Ltd and Danaher are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CKHUY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

CKHUY currently has a forward P/E ratio of 7.50, while DHR has a forward P/E of 28.08. We also note that CKHUY has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DHR currently has a PEG ratio of 2.59.

Another notable valuation metric for CKHUY is its P/B ratio of 0.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DHR has a P/B of 3.20.

Based on these metrics and many more, CKHUY holds a Value grade of A, while DHR has a Value grade of D.

CKHUY sticks out from DHR in both our Zacks Rank and Style Scores models, so value investors will likely feel that CKHUY is the better option right now.


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