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ZBH vs. ESLOY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical - Products sector have probably already heard of Zimmer Biomet (ZBH - Free Report) and EssilorLuxottica Unsponsored ADR (ESLOY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Zimmer Biomet and EssilorLuxottica Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that ZBH likely has seen a stronger improvement to its earnings outlook than ESLOY has recently. 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.
ZBH currently has a forward P/E ratio of 13.26, while ESLOY has a forward P/E of 38.42. We also note that ZBH has a PEG ratio of 2.13. 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. ESLOY currently has a PEG ratio of 5.02.
Another notable valuation metric for ZBH is its P/B ratio of 1.7. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ESLOY has a P/B of 3.21.
These are just a few of the metrics contributing to ZBH's Value grade of B and ESLOY's Value grade of D.
ZBH stands above ESLOY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZBH is the superior value option right now.
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ZBH vs. ESLOY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Products sector have probably already heard of Zimmer Biomet (ZBH - Free Report) and EssilorLuxottica Unsponsored ADR (ESLOY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Zimmer Biomet and EssilorLuxottica Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that ZBH likely has seen a stronger improvement to its earnings outlook than ESLOY has recently. 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.
ZBH currently has a forward P/E ratio of 13.26, while ESLOY has a forward P/E of 38.42. We also note that ZBH has a PEG ratio of 2.13. 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. ESLOY currently has a PEG ratio of 5.02.
Another notable valuation metric for ZBH is its P/B ratio of 1.7. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ESLOY has a P/B of 3.21.
These are just a few of the metrics contributing to ZBH's Value grade of B and ESLOY's Value grade of D.
ZBH stands above ESLOY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZBH is the superior value option right now.