Investors interested in Medical - Products stocks are likely familiar with National Vision (EYE) and Haemonetics (HAE). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both National Vision and Haemonetics have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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.
EYE currently has a forward P/E ratio of 41.08, while HAE has a forward P/E of 44.63. We also note that EYE has a PEG ratio of 2.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HAE currently has a PEG ratio of 3.31.
Another notable valuation metric for EYE is its P/B ratio of 2.81. 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, HAE has a P/B of 11.71.
These are just a few of the metrics contributing to EYE's Value grade of B and HAE's Value grade of D.
Both EYE and HAE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EYE is the superior value option right now.
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National Vision Holdings, Inc. (EYE) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
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