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BDX vs. ALGN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Becton Dickinson (BDX - Free Report) and Align Technology (ALGN - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Becton Dickinson is sporting a Zacks Rank of #2 (Buy), while Align Technology has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BDX is likely seeing its earnings outlook improve to a greater extent. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BDX currently has a forward P/E ratio of 22, while ALGN has a forward P/E of 25.61. We also note that BDX has a PEG ratio of 3.32. 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. ALGN currently has a PEG ratio of 3.54.
Another notable valuation metric for BDX is its P/B ratio of 2.86. 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, ALGN has a P/B of 5.58.
These are just a few of the metrics contributing to BDX's Value grade of B and ALGN's Value grade of C.
BDX has seen stronger estimate revision activity and sports more attractive valuation metrics than ALGN, so it seems like value investors will conclude that BDX is the superior option right now.
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BDX vs. ALGN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Becton Dickinson (BDX - Free Report) and Align Technology (ALGN - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Becton Dickinson is sporting a Zacks Rank of #2 (Buy), while Align Technology has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BDX is likely seeing its earnings outlook improve to a greater extent. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BDX currently has a forward P/E ratio of 22, while ALGN has a forward P/E of 25.61. We also note that BDX has a PEG ratio of 3.32. 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. ALGN currently has a PEG ratio of 3.54.
Another notable valuation metric for BDX is its P/B ratio of 2.86. 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, ALGN has a P/B of 5.58.
These are just a few of the metrics contributing to BDX's Value grade of B and ALGN's Value grade of C.
BDX has seen stronger estimate revision activity and sports more attractive valuation metrics than ALGN, so it seems like value investors will conclude that BDX is the superior option right now.