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

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Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Henry Schein (HSIC - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Henry Schein and Straumann Holding AG are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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.

HSIC currently has a forward P/E ratio of 16.78, while SAUHY has a forward P/E of 32.14. We also note that HSIC has a PEG ratio of 1.72. 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 2.39.

Another notable valuation metric for HSIC is its P/B ratio of 2.62. 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 7.91.

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

Both HSIC and SAUHY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HSIC is the superior value option right now.

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