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

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Investors with an interest in Medical - Products stocks have likely encountered both National Vision (EYE - Free Report) and 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Both National Vision and Insulet have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

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.

EYE currently has a forward P/E ratio of 29.15, while PODD has a forward P/E of 89.27. We also note that EYE has a PEG ratio of 1.47. 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 2.15.

Another notable valuation metric for EYE is its P/B ratio of 1.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PODD has a P/B of 18.50.

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

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


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Insulet Corporation (PODD) - free report >>

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