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HAE or SYK: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Products stocks have likely encountered both Haemonetics (HAE - Free Report) and Stryker (SYK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Haemonetics and Stryker are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

HAE currently has a forward P/E ratio of 18.66, while SYK has a forward P/E of 29.71. We also note that HAE has a PEG ratio of 1.87. 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. SYK currently has a PEG ratio of 2.87.

Another notable valuation metric for HAE is its P/B ratio of 3.94. 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, SYK has a P/B of 7.20.

Based on these metrics and many more, HAE holds a Value grade of B, while SYK has a Value grade of C.

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


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