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GEHC vs. HAE: Which Stock Is the Better Value Option?
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Investors with an interest in Medical - Products stocks have likely encountered both GE HealthCare Technologies (GEHC - Free Report) and Haemonetics (HAE - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, GE HealthCare Technologies has a Zacks Rank of #2 (Buy), while Haemonetics has a Zacks Rank of #3 (Hold). This means that GEHC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
GEHC currently has a forward P/E ratio of 14.54, while HAE has a forward P/E of 19.67. We also note that GEHC has a PEG ratio of 2.07. 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. HAE currently has a PEG ratio of 2.08.
Another notable valuation metric for GEHC is its P/B ratio of 2.95. 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, HAE has a P/B of 5.64.
Based on these metrics and many more, GEHC holds a Value grade of B, while HAE has a Value grade of C.
GEHC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GEHC is likely the superior value option right now.
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GEHC vs. HAE: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Products stocks have likely encountered both GE HealthCare Technologies (GEHC - Free Report) and Haemonetics (HAE - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, GE HealthCare Technologies has a Zacks Rank of #2 (Buy), while Haemonetics has a Zacks Rank of #3 (Hold). This means that GEHC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
GEHC currently has a forward P/E ratio of 14.54, while HAE has a forward P/E of 19.67. We also note that GEHC has a PEG ratio of 2.07. 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. HAE currently has a PEG ratio of 2.08.
Another notable valuation metric for GEHC is its P/B ratio of 2.95. 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, HAE has a P/B of 5.64.
Based on these metrics and many more, GEHC holds a Value grade of B, while HAE has a Value grade of C.
GEHC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GEHC is likely the superior value option right now.