ZBH vs. LMAT: Which Stock Is the Better Value Option?
Investors interested in Medical - Products stocks are likely familiar with Zimmer Biomet (ZBH) and 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Zimmer Biomet and LeMaitre Vascular are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ZBH likely has seen a stronger improvement to its earnings outlook than LMAT has recently. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ZBH currently has a forward P/E ratio of 17.90, while LMAT has a forward P/E of 43.92. We also note that ZBH 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 4.39.
Another notable valuation metric for ZBH is its P/B ratio of 2.20. 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, LMAT has a P/B of 4.19.
These are just a few of the metrics contributing to ZBH's Value grade of B and LMAT's Value grade of C.
ZBH sticks out from LMAT in both our Zacks Rank and Style Scores models, so value investors will likely feel that ZBH is the better option right now.
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Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
