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HRC or BSX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Products stocks have likely encountered both Hill-Rom and Boston Scientific (BSX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, Hill-Rom has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold). This means that HRC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
HRC currently has a forward P/E ratio of 17.52, while BSX has a forward P/E of 24.53. We also note that HRC has a PEG ratio of 1.25. 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. BSX currently has a PEG ratio of 2.24.
Another notable valuation metric for HRC is its P/B ratio of 3.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BSX has a P/B of 5.68.
These are just a few of the metrics contributing to HRC's Value grade of B and BSX's Value grade of C.
HRC sticks out from BSX in both our Zacks Rank and Style Scores models, so value investors will likely feel that HRC is the better option right now.
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HRC or BSX: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Products stocks have likely encountered both Hill-Rom and Boston Scientific (BSX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, Hill-Rom has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold). This means that HRC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
HRC currently has a forward P/E ratio of 17.52, while BSX has a forward P/E of 24.53. We also note that HRC has a PEG ratio of 1.25. 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. BSX currently has a PEG ratio of 2.24.
Another notable valuation metric for HRC is its P/B ratio of 3.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BSX has a P/B of 5.68.
These are just a few of the metrics contributing to HRC's Value grade of B and BSX's Value grade of C.
HRC sticks out from BSX in both our Zacks Rank and Style Scores models, so value investors will likely feel that HRC is the better option right now.