We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VREX vs. SRDX: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Medical - Products stocks are likely familiar with VAREX IMAGING (VREX - Free Report) and SurModics (SRDX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
VAREX IMAGING and SurModics are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
VREX currently has a forward P/E ratio of 45.04, while SRDX has a forward P/E of 210. We also note that VREX has a PEG ratio of 9.01. 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. SRDX currently has a PEG ratio of 21.
Another notable valuation metric for VREX is its P/B ratio of 1.28. 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, SRDX has a P/B of 4.57.
These metrics, and several others, help VREX earn a Value grade of A, while SRDX has been given a Value grade of C.
Both VREX and SRDX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VREX is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
VREX vs. SRDX: Which Stock Is the Better Value Option?
Investors interested in Medical - Products stocks are likely familiar with VAREX IMAGING (VREX - Free Report) and SurModics (SRDX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
VAREX IMAGING and SurModics are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
VREX currently has a forward P/E ratio of 45.04, while SRDX has a forward P/E of 210. We also note that VREX has a PEG ratio of 9.01. 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. SRDX currently has a PEG ratio of 21.
Another notable valuation metric for VREX is its P/B ratio of 1.28. 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, SRDX has a P/B of 4.57.
These metrics, and several others, help VREX earn a Value grade of A, while SRDX has been given a Value grade of C.
Both VREX and SRDX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VREX is the superior value option right now.