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.
NVST vs. PETQ: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Medical - Products stocks have likely encountered both Envista (NVST - Free Report) and PetIQ (PETQ - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Envista is sporting a Zacks Rank of #2 (Buy), while PetIQ has a Zacks Rank of #3 (Hold). This means that NVST's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NVST currently has a forward P/E ratio of 21.13, while PETQ has a forward P/E of 22.64. We also note that NVST has a PEG ratio of 0.80. 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. PETQ currently has a PEG ratio of 0.91.
Another notable valuation metric for NVST is its P/B ratio of 1.71. 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, PETQ has a P/B of 4.05.
These metrics, and several others, help NVST earn a Value grade of B, while PETQ has been given a Value grade of C.
NVST has seen stronger estimate revision activity and sports more attractive valuation metrics than PETQ, so it seems like value investors will conclude that NVST is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NVST vs. PETQ: Which Stock Should Value Investors Buy Now?
Investors with an interest in Medical - Products stocks have likely encountered both Envista (NVST - Free Report) and PetIQ (PETQ - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Envista is sporting a Zacks Rank of #2 (Buy), while PetIQ has a Zacks Rank of #3 (Hold). This means that NVST's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NVST currently has a forward P/E ratio of 21.13, while PETQ has a forward P/E of 22.64. We also note that NVST has a PEG ratio of 0.80. 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. PETQ currently has a PEG ratio of 0.91.
Another notable valuation metric for NVST is its P/B ratio of 1.71. 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, PETQ has a P/B of 4.05.
These metrics, and several others, help NVST earn a Value grade of B, while PETQ has been given a Value grade of C.
NVST has seen stronger estimate revision activity and sports more attractive valuation metrics than PETQ, so it seems like value investors will conclude that NVST is the superior option right now.