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EYE vs. LMAT: Which Stock Should Value Investors Buy Now?

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Investors interested in Medical - Products stocks are likely familiar with National Vision (EYE - Free Report) and LeMaitre Vascular (LMAT - 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.

National Vision has a Zacks Rank of #2 (Buy), while LeMaitre Vascular has a Zacks Rank of #3 (Hold) right now. This means that EYE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.

EYE currently has a forward P/E ratio of 36.97, while LMAT has a forward P/E of 37.37. We also note that EYE has a PEG ratio of 2.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LMAT currently has a PEG ratio of 3.74.

Another notable valuation metric for EYE is its P/B ratio of 2.53. 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, LMAT has a P/B of 4.60.

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

EYE sticks out from LMAT in both our Zacks Rank and Style Scores models, so value investors will likely feel that EYE is the better option right now.


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LeMaitre Vascular, Inc. (LMAT) - free report >>

National Vision Holdings, Inc. (EYE) - free report >>

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