HSIC vs. COO: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Henry Schein (HSIC) or The Cooper Companies (COO). 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.
Right now, Henry Schein is sporting a Zacks Rank of #1 (Strong Buy), while The Cooper Companies has a Zacks Rank of #3 (Hold). This means that HSIC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
HSIC currently has a forward P/E ratio of 18.87, while COO has a forward P/E of 30.71. We also note that HSIC has a PEG ratio of 1.68. 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. COO currently has a PEG ratio of 3.07.
Another notable valuation metric for HSIC is its P/B ratio of 2.67. 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, COO has a P/B of 3.26.
Based on these metrics and many more, HSIC holds a Value grade of B, while COO 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.
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Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
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