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HSIC vs. COO: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Henry Schein (HSIC - Free Report) or The Cooper Companies (COO - 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.

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.

Right now, Henry Schein is sporting a Zacks Rank of #1 (Strong Buy), while The Cooper Companies 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 HSIC has an improving earnings outlook. 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.

HSIC currently has a forward P/E ratio of 19.22, while COO has a forward P/E of 28.88. We also note that HSIC has a PEG ratio of 1.71. 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. COO currently has a PEG ratio of 2.89.

Another notable valuation metric for HSIC is its P/B ratio of 2.70. 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, COO has a P/B of 3.05.

Based on these metrics and many more, HSIC holds a Value grade of B, while COO has a Value grade of C.

HSIC has seen stronger estimate revision activity and sports more attractive valuation metrics than COO, so it seems like value investors will conclude that HSIC is the superior option right now.


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Henry Schein, Inc. (HSIC) - free report >>

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