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

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Investors looking for stocks in the Medical - Products sector might want to consider either EssilorLuxottica Unsponsored ADR (ESLOY - Free Report) or Insulet (PODD - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, EssilorLuxottica Unsponsored ADR has a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ESLOY has 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.

ESLOY currently has a forward P/E ratio of 25.21, while PODD has a forward P/E of 213.39. We also note that ESLOY has a PEG ratio of 3.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PODD currently has a PEG ratio of 6.08.

Another notable valuation metric for ESLOY is its P/B ratio of 2.09. 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 40.74.

These metrics, and several others, help ESLOY earn a Value grade of B, while PODD has been given a Value grade of D.

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


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Insulet Corporation (PODD) - free report >>

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