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XRAY or COO: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Dentsply International (XRAY - Free Report) and The Cooper Companies (COO - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, both Dentsply International and The Cooper Companies are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

XRAY currently has a forward P/E ratio of 20.16, while COO has a forward P/E of 28.43. We also note that XRAY has a PEG ratio of 2.27. 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. COO currently has a PEG ratio of 2.58.

Another notable valuation metric for XRAY is its P/B ratio of 2.13. 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, COO has a P/B of 2.44.

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

Both XRAY and COO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that XRAY is the superior value option right now.


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DENTSPLY SIRONA Inc. (XRAY) - free report >>

The Cooper Companies, Inc. (COO) - free report >>

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