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COO vs. ALGN: Which Stock Is the Better Value Option?
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Investors interested in Medical - Dental Supplies stocks are likely familiar with The Cooper Companies (COO - Free Report) and Align Technology (ALGN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
The Cooper Companies has a Zacks Rank of #2 (Buy), while Align Technology has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that COO has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
COO currently has a forward P/E ratio of 27.75, while ALGN has a forward P/E of 42.34. We also note that COO has a PEG ratio of 2.52. 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. ALGN currently has a PEG ratio of 2.65.
Another notable valuation metric for COO is its P/B ratio of 2.38. 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 7.34.
These metrics, and several others, help COO earn a Value grade of B, while ALGN has been given a Value grade of C.
COO sticks out from ALGN in both our Zacks Rank and Style Scores models, so value investors will likely feel that COO is the better option right now.
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COO vs. ALGN: Which Stock Is the Better Value Option?
Investors interested in Medical - Dental Supplies stocks are likely familiar with The Cooper Companies (COO - Free Report) and Align Technology (ALGN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
The Cooper Companies has a Zacks Rank of #2 (Buy), while Align Technology has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that COO has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
COO currently has a forward P/E ratio of 27.75, while ALGN has a forward P/E of 42.34. We also note that COO has a PEG ratio of 2.52. 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. ALGN currently has a PEG ratio of 2.65.
Another notable valuation metric for COO is its P/B ratio of 2.38. 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 7.34.
These metrics, and several others, help COO earn a Value grade of B, while ALGN has been given a Value grade of C.
COO sticks out from ALGN in both our Zacks Rank and Style Scores models, so value investors will likely feel that COO is the better option right now.