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HSIC 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 Henry Schein (HSIC - Free Report) and Straumann Holding AG (SAUHY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Henry Schein is sporting a Zacks Rank of #2 (Buy), while Straumann Holding AG has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HSIC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

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 16.71, while SAUHY has a forward P/E of 28.19. We also note that HSIC has a PEG ratio of 1.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SAUHY currently has a PEG ratio of 2.10.

Another notable valuation metric for HSIC is its P/B ratio of 2.61. 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, SAUHY has a P/B of 7.05.

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

HSIC has seen stronger estimate revision activity and sports more attractive valuation metrics than SAUHY, so it seems like value investors will conclude that HSIC is the superior option right now.

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