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MMSI or SAUHY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Merit Medical (MMSI - Free Report) or Straumann Holding AG (SAUHY - 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.

Right now, Merit Medical is sporting a Zacks Rank of #2 (Buy), while Straumann Holding AG 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 MMSI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MMSI currently has a forward P/E ratio of 23.18, while SAUHY has a forward P/E of 29.60. We also note that MMSI has a PEG ratio of 2.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SAUHY currently has a PEG ratio of 2.74.

Another notable valuation metric for MMSI is its P/B ratio of 3.35. 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, SAUHY has a P/B of 7.05.

These are just a few of the metrics contributing to MMSI's Value grade of B and SAUHY's Value grade of D.

MMSI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MMSI is likely the superior value option right now.


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Merit Medical Systems, Inc. (MMSI) - free report >>

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