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XRAY or MMSI: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Dentsply International (XRAY - Free Report) and Merit Medical (MMSI - 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.
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.
Dentsply International and Merit Medical 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 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 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 8.73, while MMSI has a forward P/E of 28.03. We also note that XRAY has a PEG ratio of 1.18. 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. MMSI currently has a PEG ratio of 2.73.
Another notable valuation metric for XRAY is its P/B ratio of 1.64. 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, MMSI has a P/B of 3.89.
Based on these metrics and many more, XRAY holds a Value grade of A, while MMSI has a Value grade of C.
XRAY stands above MMSI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that XRAY is the superior value option right now.
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XRAY or MMSI: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Dentsply International (XRAY - Free Report) and Merit Medical (MMSI - 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.
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.
Dentsply International and Merit Medical 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 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 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 8.73, while MMSI has a forward P/E of 28.03. We also note that XRAY has a PEG ratio of 1.18. 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. MMSI currently has a PEG ratio of 2.73.
Another notable valuation metric for XRAY is its P/B ratio of 1.64. 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, MMSI has a P/B of 3.89.
Based on these metrics and many more, XRAY holds a Value grade of A, while MMSI has a Value grade of C.
XRAY stands above MMSI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that XRAY is the superior value option right now.