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DXCM or MASI: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Instruments sector might want to consider either DexCom (DXCM - Free Report) or Masimo (MASI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Currently, DexCom has a Zacks Rank of #2 (Buy), while Masimo has a Zacks Rank of #3 (Hold). This means that DXCM'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.
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.
DXCM currently has a forward P/E ratio of 23.84, while MASI has a forward P/E of 30.95. We also note that DXCM has a PEG ratio of 1.16. 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. MASI currently has a PEG ratio of 1.81.
Another notable valuation metric for DXCM is its P/B ratio of 8.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MASI has a P/B of 13.3.
Based on these metrics and many more, DXCM holds a Value grade of B, while MASI has a Value grade of D.
DXCM sticks out from MASI in both our Zacks Rank and Style Scores models, so value investors will likely feel that DXCM is the better option right now.
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DXCM or MASI: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Instruments sector might want to consider either DexCom (DXCM - Free Report) or Masimo (MASI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Currently, DexCom has a Zacks Rank of #2 (Buy), while Masimo has a Zacks Rank of #3 (Hold). This means that DXCM'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.
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.
DXCM currently has a forward P/E ratio of 23.84, while MASI has a forward P/E of 30.95. We also note that DXCM has a PEG ratio of 1.16. 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. MASI currently has a PEG ratio of 1.81.
Another notable valuation metric for DXCM is its P/B ratio of 8.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MASI has a P/B of 13.3.
Based on these metrics and many more, DXCM holds a Value grade of B, while MASI has a Value grade of D.
DXCM sticks out from MASI in both our Zacks Rank and Style Scores models, so value investors will likely feel that DXCM is the better option right now.