ESLOY or LMAT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Products sector might want to consider either EssilorLuxottica Unsponsored ADR (ESLOY) or LeMaitre Vascular (LMAT). But which of these two companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
EssilorLuxottica Unsponsored ADR and LeMaitre Vascular are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ESLOY has 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 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.
ESLOY currently has a forward P/E ratio of 28.91, while LMAT has a forward P/E of 43.15. We also note that ESLOY has a PEG ratio of 1.37. 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. LMAT currently has a PEG ratio of 4.32.
Another notable valuation metric for ESLOY is its P/B ratio of 1.88. 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, LMAT has a P/B of 3.91.
These are just a few of the metrics contributing to ESLOY's Value grade of B and LMAT's Value grade of C.
ESLOY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ESLOY is likely the superior value option right now.
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EssilorLuxottica Unsponsored ADR (ESLOY) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
