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XRAY vs. CNMD: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Dentsply International (XRAY - Free Report) or Conmed (CNMD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, both Dentsply International and Conmed 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. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

XRAY currently has a forward P/E ratio of 21.56, while CNMD has a forward P/E of 32.73. We also note that XRAY has a PEG ratio of 2.24. 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. CNMD currently has a PEG ratio of 2.85.

Another notable valuation metric for XRAY is its P/B ratio of 2.14. 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, CNMD has a P/B of 3.40.

Based on these metrics and many more, XRAY holds a Value grade of B, while CNMD has a Value grade of C.

Both XRAY and CNMD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that XRAY is the superior value option right now.


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CONMED Corporation (CNMD) - free report >>

DENTSPLY SIRONA Inc. (XRAY) - free report >>

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