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

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Investors interested in Medical - Dental Supplies stocks are likely familiar with Align Technology (ALGN - Free Report) and Straumann Holding AG (SAUHY - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Align Technology and Straumann Holding AG are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ALGN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ALGN currently has a forward P/E ratio of 15.04, while SAUHY has a forward P/E of 31.62. We also note that ALGN has a PEG ratio of 1.46. 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. SAUHY currently has a PEG ratio of 2.37.

Another notable valuation metric for ALGN is its P/B ratio of 2.95. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SAUHY has a P/B of 7.85.

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

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

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