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HAE or PODD: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Products stocks have likely encountered both Haemonetics (HAE - Free Report) and Insulet (PODD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Haemonetics and Insulet are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HAE 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

HAE currently has a forward P/E ratio of 24.52, while PODD has a forward P/E of 225.13. We also note that HAE has a PEG ratio of 2.45. 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. PODD currently has a PEG ratio of 6.41.

Another notable valuation metric for HAE is its P/B ratio of 5.19. 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, PODD has a P/B of 41.73.

These are just a few of the metrics contributing to HAE's Value grade of B and PODD's Value grade of D.

HAE has seen stronger estimate revision activity and sports more attractive valuation metrics than PODD, so it seems like value investors will conclude that HAE is the superior option right now.


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