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MMSI 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 Merit Medical (MMSI - Free Report) and Align Technology (ALGN - 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.
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, Merit Medical is sporting a Zacks Rank of #2 (Buy), while Align Technology has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that MMSI likely has seen a stronger improvement to its earnings outlook than ALGN has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
MMSI currently has a forward P/E ratio of 27.41, while ALGN has a forward P/E of 28.21. We also note that MMSI has a PEG ratio of 2.49. 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 22.93.
Another notable valuation metric for MMSI is its P/B ratio of 3.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ALGN has a P/B of 4.20.
These metrics, and several others, help MMSI earn a Value grade of B, while ALGN has been given a Value grade of D.
MMSI has seen stronger estimate revision activity and sports more attractive valuation metrics than ALGN, so it seems like value investors will conclude that MMSI is the superior option right now.
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MMSI vs. ALGN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Merit Medical (MMSI - Free Report) and Align Technology (ALGN - 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.
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, Merit Medical is sporting a Zacks Rank of #2 (Buy), while Align Technology has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that MMSI likely has seen a stronger improvement to its earnings outlook than ALGN has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
MMSI currently has a forward P/E ratio of 27.41, while ALGN has a forward P/E of 28.21. We also note that MMSI has a PEG ratio of 2.49. 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 22.93.
Another notable valuation metric for MMSI is its P/B ratio of 3.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ALGN has a P/B of 4.20.
These metrics, and several others, help MMSI earn a Value grade of B, while ALGN has been given a Value grade of D.
MMSI has seen stronger estimate revision activity and sports more attractive valuation metrics than ALGN, so it seems like value investors will conclude that MMSI is the superior option right now.