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HAE vs. SYK: Which Stock Should Value Investors Buy Now?
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Investors interested in Medical - Products stocks are likely familiar with Haemonetics (HAE - Free Report) and Stryker (SYK - 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.
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 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.
Haemonetics and Stryker are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HAE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
HAE currently has a forward P/E ratio of 20.79, while SYK has a forward P/E of 28.47. We also note that HAE has a PEG ratio of 2.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SYK currently has a PEG ratio of 2.83.
Another notable valuation metric for HAE is its P/B ratio of 4.59. 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, SYK has a P/B of 6.29.
These are just a few of the metrics contributing to HAE's Value grade of B and SYK's Value grade of D.
HAE has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that HAE is the superior option right now.
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HAE vs. SYK: Which Stock Should Value Investors Buy Now?
Investors interested in Medical - Products stocks are likely familiar with Haemonetics (HAE - Free Report) and Stryker (SYK - 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.
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 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.
Haemonetics and Stryker are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that HAE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
HAE currently has a forward P/E ratio of 20.79, while SYK has a forward P/E of 28.47. We also note that HAE has a PEG ratio of 2.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SYK currently has a PEG ratio of 2.83.
Another notable valuation metric for HAE is its P/B ratio of 4.59. 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, SYK has a P/B of 6.29.
These are just a few of the metrics contributing to HAE's Value grade of B and SYK's Value grade of D.
HAE has seen stronger estimate revision activity and sports more attractive valuation metrics than SYK, so it seems like value investors will conclude that HAE is the superior option right now.