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MMSI vs. WST: Which Stock Should Value Investors Buy 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 West Pharmaceutical Services (WST - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Merit Medical and West Pharmaceutical Services have a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
MMSI currently has a forward P/E ratio of 18.19, while WST has a forward P/E of 41.65. We also note that MMSI has a PEG ratio of 2.05. 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. WST currently has a PEG ratio of 2.90.
Another notable valuation metric for MMSI is its P/B ratio of 2.71. 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, WST has a P/B of 8.46.
Based on these metrics and many more, MMSI holds a Value grade of B, while WST has a Value grade of D.
Both MMSI and WST are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MMSI is the superior value option right now.
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MMSI vs. WST: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Merit Medical (MMSI - Free Report) or West Pharmaceutical Services (WST - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Merit Medical and West Pharmaceutical Services have a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
MMSI currently has a forward P/E ratio of 18.19, while WST has a forward P/E of 41.65. We also note that MMSI has a PEG ratio of 2.05. 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. WST currently has a PEG ratio of 2.90.
Another notable valuation metric for MMSI is its P/B ratio of 2.71. 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, WST has a P/B of 8.46.
Based on these metrics and many more, MMSI holds a Value grade of B, while WST has a Value grade of D.
Both MMSI and WST are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MMSI is the superior value option right now.