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GMED vs. AXGN: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Medical - Instruments sector have probably already heard of Globus Medical (GMED - Free Report) and AxoGen (AXGN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Globus Medical and AxoGen have a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GMED currently has a forward P/E ratio of 15.64, while AXGN has a forward P/E of 95.86. We also note that GMED has a PEG ratio of 1.26. 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. AXGN currently has a PEG ratio of 2.42.
Another notable valuation metric for GMED is its P/B ratio of 2.2. 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, AXGN has a P/B of 5.94.
Based on these metrics and many more, GMED holds a Value grade of B, while AXGN has a Value grade of F.
Both GMED and AXGN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GMED is the superior value option right now.
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GMED vs. AXGN: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Medical - Instruments sector have probably already heard of Globus Medical (GMED - Free Report) and AxoGen (AXGN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Globus Medical and AxoGen have a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GMED currently has a forward P/E ratio of 15.64, while AXGN has a forward P/E of 95.86. We also note that GMED has a PEG ratio of 1.26. 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. AXGN currently has a PEG ratio of 2.42.
Another notable valuation metric for GMED is its P/B ratio of 2.2. 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, AXGN has a P/B of 5.94.
Based on these metrics and many more, GMED holds a Value grade of B, while AXGN has a Value grade of F.
Both GMED and AXGN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GMED is the superior value option right now.