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NHNKY vs. PEN: Which Stock Is the Better Value Option?
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Investors with an interest in Medical - Instruments stocks have likely encountered both Nihon Kohden Corporation (NHNKY - Free Report) and Penumbra (PEN - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Nihon Kohden Corporation and Penumbra are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
NHNKY currently has a forward P/E ratio of 26.89, while PEN has a forward P/E of 203.07. We also note that NHNKY has a PEG ratio of 2.89. 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. PEN currently has a PEG ratio of 10.15.
Another notable valuation metric for NHNKY is its P/B ratio of 2.69. 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, PEN has a P/B of 13.01.
These are just a few of the metrics contributing to NHNKY's Value grade of B and PEN's Value grade of D.
Both NHNKY and PEN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NHNKY is the superior value option right now.
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NHNKY vs. PEN: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Instruments stocks have likely encountered both Nihon Kohden Corporation (NHNKY - Free Report) and Penumbra (PEN - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Nihon Kohden Corporation and Penumbra are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
NHNKY currently has a forward P/E ratio of 26.89, while PEN has a forward P/E of 203.07. We also note that NHNKY has a PEG ratio of 2.89. 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. PEN currently has a PEG ratio of 10.15.
Another notable valuation metric for NHNKY is its P/B ratio of 2.69. 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, PEN has a P/B of 13.01.
These are just a few of the metrics contributing to NHNKY's Value grade of B and PEN's Value grade of D.
Both NHNKY and PEN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NHNKY is the superior value option right now.