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CKHUY or DHR: Which Is the Better Value Stock Right Now?

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Investors interested in Diversified Operations stocks are likely familiar with Ck Hutchison Holdings Ltd (CKHUY - Free Report) and Danaher (DHR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies 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. However, value investors will care about much more than just this.

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 6.91, while DHR has a forward P/E of 27.64. We also note that CKHUY has a PEG ratio of 0.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DHR currently has a PEG ratio of 2.54.

Another notable valuation metric for CKHUY is its P/B ratio of 0.50. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DHR has a P/B of 3.15.

These metrics, and several others, help CKHUY earn a Value grade of A, while DHR has been given a Value grade of D.

CKHUY stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CKHUY is the superior value option right now.


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