U.S. Markets open in 5 hrs 28 mins
  • S&P Futures

    4,689.50
    -9.50 (-0.20%)
     
  • Dow Futures

    35,659.00
    -87.00 (-0.24%)
     
  • Nasdaq Futures

    16,369.75
    -22.50 (-0.14%)
     
  • Russell 2000 Futures

    2,261.50
    -8.30 (-0.37%)
     
  • Crude Oil

    72.21
    -0.15 (-0.21%)
     
  • Gold

    1,784.00
    -1.50 (-0.08%)
     
  • Silver

    22.30
    -0.13 (-0.59%)
     
  • EUR/USD

    1.1324
    -0.0021 (-0.1812%)
     
  • 10-Yr Bond

    1.5090
    0.0000 (0.00%)
     
  • Vix

    20.27
    -1.62 (-7.40%)
     
  • GBP/USD

    1.3203
    -0.0004 (-0.0304%)
     
  • USD/JPY

    113.4670
    -0.2700 (-0.2374%)
     
  • BTC-USD

    49,546.80
    -961.15 (-1.90%)
     
  • CMC Crypto 200

    1,296.30
    -8.82 (-0.68%)
     
  • FTSE 100

    7,348.51
    +11.46 (+0.16%)
     
  • Nikkei 225

    28,725.47
    -135.15 (-0.47%)
     

HSIC or CNMD: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Henry Schein (HSIC) or Conmed (CNMD). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Henry Schein has a Zacks Rank of #2 (Buy), while Conmed has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HSIC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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.

HSIC currently has a forward P/E ratio of 17.97, while CNMD has a forward P/E of 44.63. We also note that HSIC has a PEG ratio of 1.30. 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. CNMD currently has a PEG ratio of 4.75.

Another notable valuation metric for HSIC is its P/B ratio of 2.70. 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, CNMD has a P/B of 5.56.

Based on these metrics and many more, HSIC holds a Value grade of A, while CNMD has a Value grade of C.

HSIC 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 HSIC is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
 
CONMED Corporation (CNMD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.