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VREX vs. LMAT: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - Products stocks have likely encountered both VAREX IMAGING (VREX - Free Report) and LeMaitre Vascular (LMAT - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, VAREX IMAGING is sporting a Zacks Rank of #2 (Buy), while LeMaitre Vascular has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VREX likely has seen a stronger improvement to its earnings outlook than LMAT has recently. But this is just one factor that value investors are interested in.

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.

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.

VREX currently has a forward P/E ratio of 29.83, while LMAT has a forward P/E of 40.04. We also note that VREX has a PEG ratio of 1.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LMAT currently has a PEG ratio of 4.

Another notable valuation metric for VREX is its P/B ratio of 1.56. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, LMAT has a P/B of 3.99.

These metrics, and several others, help VREX earn a Value grade of A, while LMAT has been given a Value grade of C.

VREX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VREX is likely the superior value option right now.


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LeMaitre Vascular, Inc. (LMAT) - free report >>

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