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HAE or BSX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Products sector have probably already heard of Haemonetics (HAE - Free Report) and Boston Scientific (BSX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Haemonetics is sporting a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HAE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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 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 19.79, while BSX has a forward P/E of 35.61. We also note that HAE has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BSX currently has a PEG ratio of 2.58.
Another notable valuation metric for HAE is its P/B ratio of 5.28. 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, BSX has a P/B of 6.16.
Based on these metrics and many more, HAE holds a Value grade of B, while BSX has a Value grade of C.
HAE stands above BSX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HAE is the superior value option right now.