Back to top

Image: Bigstock

ESLOY vs. SYK: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Medical - Products sector have probably already heard of EssilorLuxottica Unsponsored ADR (ESLOY - Free Report) and Stryker (SYK - 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.

EssilorLuxottica Unsponsored ADR and Stryker are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ESLOY 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 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ESLOY currently has a forward P/E ratio of 24.50, while SYK has a forward P/E of 26.42. We also note that ESLOY has a PEG ratio of 1.11. 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. SYK currently has a PEG ratio of 2.72.

Another notable valuation metric for ESLOY is its P/B ratio of 1.79. 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, SYK has a P/B of 6.03.

Based on these metrics and many more, ESLOY holds a Value grade of B, while SYK has a Value grade of C.

ESLOY sticks out from SYK in both our Zacks Rank and Style Scores models, so value investors will likely feel that ESLOY is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Stryker Corporation (SYK) - free report >>

EssilorLuxottica Unsponsored ADR (ESLOY) - free report >>

Published in