HOLX or SONVY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Instruments sector might want to consider either Hologic (HOLX) or SONOVA HOLDING (SONVY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Hologic is sporting a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HOLX is likely seeing its earnings outlook improve to a greater extent. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HOLX currently has a forward P/E ratio of 18.55, while SONVY has a forward P/E of 28.24. We also note that HOLX has a PEG ratio of 2.40. 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. SONVY currently has a PEG ratio of 3.24.
Another notable valuation metric for HOLX is its P/B ratio of 3.61. 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, SONVY has a P/B of 8.22.
These metrics, and several others, help HOLX earn a Value grade of B, while SONVY has been given a Value grade of C.
HOLX sticks out from SONVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that HOLX is the better option right now.
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Hologic, Inc. (HOLX) : Free Stock Analysis Report
SONOVA HOLDING (SONVY) : Free Stock Analysis Report
