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PDCO vs. MMSI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Patterson Cos. (PDCO - Free Report) or Merit Medical (MMSI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Patterson Cos. and Merit Medical are holding 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 factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PDCO currently has a forward P/E ratio of 12.13, while MMSI has a forward P/E of 22.69. We also note that PDCO has a PEG ratio of 1.32. 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. MMSI currently has a PEG ratio of 1.97.
Another notable valuation metric for PDCO is its P/B ratio of 2.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MMSI has a P/B of 3.12.
These are just a few of the metrics contributing to PDCO's Value grade of A and MMSI's Value grade of C.
Both PDCO and MMSI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PDCO is the superior value option right now.
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PDCO vs. MMSI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Patterson Cos. (PDCO - Free Report) or Merit Medical (MMSI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Patterson Cos. and Merit Medical are holding 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 factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PDCO currently has a forward P/E ratio of 12.13, while MMSI has a forward P/E of 22.69. We also note that PDCO has a PEG ratio of 1.32. 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. MMSI currently has a PEG ratio of 1.97.
Another notable valuation metric for PDCO is its P/B ratio of 2.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MMSI has a P/B of 3.12.
These are just a few of the metrics contributing to PDCO's Value grade of A and MMSI's Value grade of C.
Both PDCO and MMSI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PDCO is the superior value option right now.