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XRAY vs. COO: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Dentsply International (XRAY - Free Report) or The Cooper Companies (COO - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Dentsply International and The Cooper Companies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that XRAY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

XRAY currently has a forward P/E ratio of 8.64, while COO has a forward P/E of 20.09. We also note that XRAY has a PEG ratio of 1.17. 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. COO currently has a PEG ratio of 2.02.

Another notable valuation metric for XRAY is its P/B ratio of 1.62. 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, COO has a P/B of 1.96.

These are just a few of the metrics contributing to XRAY's Value grade of A and COO's Value grade of C.

XRAY has seen stronger estimate revision activity and sports more attractive valuation metrics than COO, so it seems like value investors will conclude that XRAY is the superior option right now.


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DENTSPLY SIRONA Inc. (XRAY) - free report >>

The Cooper Companies, Inc. (COO) - free report >>

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