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HSIC 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 Henry Schein (HSIC - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Henry Schein is sporting a Zacks Rank of #2 (Buy), while Straumann Holding AG has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HSIC has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

HSIC currently has a forward P/E ratio of 14.89, while SAUHY has a forward P/E of 26.71. We also note that HSIC has a PEG ratio of 2.24. 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. SAUHY currently has a PEG ratio of 2.60.

Another notable valuation metric for HSIC is its P/B ratio of 2.3. 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, SAUHY has a P/B of 7.61.

Based on these metrics and many more, HSIC holds a Value grade of A, while SAUHY has a Value grade of D.

HSIC sticks out from SAUHY in both our Zacks Rank and Style Scores models, so value investors will likely feel that HSIC is the better option right now.


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