Investors interested in Medical - Dental Supplies stocks are likely familiar with Dentsply International (XRAY) and Align Technology (ALGN). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Dentsply International has a Zacks Rank of #2 (Buy), while Align Technology has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that XRAY has an improving earnings outlook. But this is only part of the picture 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.
XRAY currently has a forward P/E ratio of 23.07, while ALGN has a forward P/E of 49.87. We also note that XRAY has a PEG ratio of 1.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALGN currently has a PEG ratio of 2.26.
Another notable valuation metric for XRAY is its P/B ratio of 2.51. 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, ALGN has a P/B of 16.23.
Based on these metrics and many more, XRAY holds a Value grade of B, while ALGN has a Value grade of D.
XRAY stands above ALGN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that XRAY is the superior value option right now.
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DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
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