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MMSI vs. SAUHY: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Merit Medical (MMSI - Free Report) and Straumann Holding AG (SAUHY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight 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). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MMSI has an improving earnings 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.

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.

MMSI currently has a forward P/E ratio of 19.05, while SAUHY has a forward P/E of 29.03. We also note that MMSI has a PEG ratio of 2.00. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAUHY currently has a PEG ratio of 2.47.

Another notable valuation metric for MMSI is its P/B ratio of 2.89. 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 7.66.

Based on these metrics and many more, MMSI holds a Value grade of B, while SAUHY has a Value grade of C.

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 >>

Straumann Holding AG (SAUHY) - free report >>

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