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BDX or WST: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Becton Dickinson (BDX - Free Report) or West Pharmaceutical Services (WST - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Becton Dickinson and West Pharmaceutical Services 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 BDX has an improving earnings outlook. However, value investors will care about much more than just this.
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.
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.
BDX currently has a forward P/E ratio of 18.82, while WST has a forward P/E of 46.26. We also note that BDX has a PEG ratio of 2.01. 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. WST currently has a PEG ratio of 4.01.
Another notable valuation metric for BDX is its P/B ratio of 2.78. 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, WST has a P/B of 10.49.
These metrics, and several others, help BDX earn a Value grade of B, while WST has been given a Value grade of D.
BDX stands above WST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BDX is the superior value option right now.
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BDX or WST: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Becton Dickinson (BDX - Free Report) or West Pharmaceutical Services (WST - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Becton Dickinson and West Pharmaceutical Services 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 BDX has an improving earnings outlook. However, value investors will care about much more than just this.
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.
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.
BDX currently has a forward P/E ratio of 18.82, while WST has a forward P/E of 46.26. We also note that BDX has a PEG ratio of 2.01. 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. WST currently has a PEG ratio of 4.01.
Another notable valuation metric for BDX is its P/B ratio of 2.78. 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, WST has a P/B of 10.49.
These metrics, and several others, help BDX earn a Value grade of B, while WST has been given a Value grade of D.
BDX stands above WST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BDX is the superior value option right now.