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QDEL vs. GNNDY: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - Products stocks have likely encountered both Quidel (QDEL - Free Report) and GN STORE NORD (GNNDY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Quidel has a Zacks Rank of #2 (Buy), while GN STORE NORD has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QDEL is likely seeing its earnings outlook improve to a greater extent. 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.

QDEL currently has a forward P/E ratio of 20.42, while GNNDY has a forward P/E of 28.12. We also note that QDEL has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GNNDY currently has a PEG ratio of 1.76.

Another notable valuation metric for QDEL is its P/B ratio of 5.60. 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, GNNDY has a P/B of 8.66.

Based on these metrics and many more, QDEL holds a Value grade of B, while GNNDY has a Value grade of D.

QDEL stands above GNNDY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QDEL is the superior value option right now.


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