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XRAY or WST: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Dentsply International (XRAY - Free Report) and West Pharmaceutical Services (WST - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Dentsply International and West Pharmaceutical Services are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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.

XRAY currently has a forward P/E ratio of 23.43, while WST has a forward P/E of 47.05. We also note that XRAY has a PEG ratio of 2.02. 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. WST currently has a PEG ratio of 3.36.

Another notable valuation metric for XRAY is its P/B ratio of 2.43. 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, WST has a P/B of 7.35.

These metrics, and several others, help XRAY earn a Value grade of B, while WST has been given a Value grade of C.

Both XRAY and WST 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 >>

West Pharmaceutical Services, Inc. (WST) - free report >>

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