Investors interested in stocks from the Medical - Products sector have probably already heard of Envista (NVST) and GN STORE NORD (GNNDY). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Envista has a Zacks Rank of #2 (Buy), while GN STORE NORD has a Zacks Rank of #4 (Sell). 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 just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 17.18, while GNNDY has a forward P/E of 25.53. We also note that NVST has a PEG ratio of 1.43. 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. GNNDY currently has a PEG ratio of 1.60.
Another notable valuation metric for NVST is its P/B ratio of 1.36. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GNNDY has a P/B of 8.79.
These are just a few of the metrics contributing to NVST's Value grade of B and GNNDY's Value grade of C.
NVST sticks out from GNNDY in both our Zacks Rank and Style Scores models, so value investors will likely feel that NVST is the better option right now.
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Envista Holdings Corporation (NVST) : Free Stock Analysis Report
GN STORE NORD (GNNDY) : Free Stock Analysis Report
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