PETQ or LMAT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Products sector might want to consider either PetIQ (PETQ) or LeMaitre Vascular (LMAT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
PetIQ has a Zacks Rank of #2 (Buy), while LeMaitre Vascular has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PETQ has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
PETQ currently has a forward P/E ratio of 23.13, while LMAT has a forward P/E of 38.11. We also note that PETQ has a PEG ratio of 2.89. 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. LMAT currently has a PEG ratio of 4.76.
Another notable valuation metric for PETQ is its P/B ratio of 2.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LMAT has a P/B of 3.86.
These metrics, and several others, help PETQ earn a Value grade of B, while LMAT has been given a Value grade of D.
PETQ has seen stronger estimate revision activity and sports more attractive valuation metrics than LMAT, so it seems like value investors will conclude that PETQ is the superior option right now.
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PetIQ, Inc. (PETQ) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
