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XRAY vs. COO: Which Stock Is the Better Value Option?

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Investors interested in Medical - Dental Supplies stocks are likely familiar with Dentsply International (XRAY - Free Report) and Cooper Cos. (COO - 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.

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, both Dentsply International and Cooper Cos. are holding a Zacks Rank of # 2 (Buy). 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 factor that value investors are interested in.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

XRAY currently has a forward P/E ratio of 21.92, while COO has a forward P/E of 27.24. We also note that XRAY has a PEG ratio of 1.91. 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. COO currently has a PEG ratio of 2.53.

Another notable valuation metric for XRAY is its P/B ratio of 2.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, COO has a P/B of 4.67.

These are just a few of the metrics contributing to XRAY's Value grade of B and COO's Value grade of C.

Both XRAY and COO 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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DENTSPLY SIRONA Inc. (XRAY) - free report >>

The Cooper Companies, Inc. (COO) - free report >>

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