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OCPNY or EW: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Instruments sector have probably already heard of Olympus Corp. and Edwards Lifesciences (EW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Olympus Corp. is sporting a Zacks Rank of #2 (Buy), while Edwards Lifesciences has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that OCPNY likely has seen a stronger improvement to its earnings outlook than EW has recently. 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 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.
OCPNY currently has a forward P/E ratio of 30.75, while EW has a forward P/E of 49.08. We also note that OCPNY has a PEG ratio of 1.36. 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. EW currently has a PEG ratio of 3.12.
Another notable valuation metric for OCPNY is its P/B ratio of 7.88. 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, EW has a P/B of 13.49.
Based on these metrics and many more, OCPNY holds a Value grade of B, while EW has a Value grade of D.
OCPNY has seen stronger estimate revision activity and sports more attractive valuation metrics than EW, so it seems like value investors will conclude that OCPNY is the superior option right now.
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OCPNY or EW: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Instruments sector have probably already heard of Olympus Corp. and Edwards Lifesciences (EW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Olympus Corp. is sporting a Zacks Rank of #2 (Buy), while Edwards Lifesciences has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that OCPNY likely has seen a stronger improvement to its earnings outlook than EW has recently. 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 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.
OCPNY currently has a forward P/E ratio of 30.75, while EW has a forward P/E of 49.08. We also note that OCPNY has a PEG ratio of 1.36. 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. EW currently has a PEG ratio of 3.12.
Another notable valuation metric for OCPNY is its P/B ratio of 7.88. 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, EW has a P/B of 13.49.
Based on these metrics and many more, OCPNY holds a Value grade of B, while EW has a Value grade of D.
OCPNY has seen stronger estimate revision activity and sports more attractive valuation metrics than EW, so it seems like value investors will conclude that OCPNY is the superior option right now.