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NVST or BSX: Which Is the Better Value Stock Right Now?

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·2 min read
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Investors looking for stocks in the Medical - Products sector might want to consider either Envista (NVST) or Boston Scientific (BSX). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Envista has a Zacks Rank of #2 (Buy), while Boston Scientific 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 NVST is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

NVST currently has a forward P/E ratio of 22.13, while BSX has a forward P/E of 27.79. We also note that NVST has a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BSX currently has a PEG ratio of 2.98.

Another notable valuation metric for NVST is its P/B ratio of 1.80. 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, BSX has a P/B of 3.99.

These metrics, and several others, help NVST earn a Value grade of B, while BSX has been given a Value grade of C.

NVST has seen stronger estimate revision activity and sports more attractive valuation metrics than BSX, so it seems like value investors will conclude that NVST is the superior option right now.

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Envista Holdings Corporation (NVST) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
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Zacks Investment Research