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PDCO or CNMD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Patterson Cos. (PDCO - Free Report) and Conmed (CNMD - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Patterson Cos. has a Zacks Rank of #2 (Buy), while Conmed 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 PDCO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
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.
PDCO currently has a forward P/E ratio of 14.15, while CNMD has a forward P/E of 32.58. We also note that PDCO has a PEG ratio of 1.42. 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. CNMD currently has a PEG ratio of 2.65.
Another notable valuation metric for PDCO is its P/B ratio of 2.98. 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, CNMD has a P/B of 4.34.
Based on these metrics and many more, PDCO holds a Value grade of B, while CNMD has a Value grade of C.
PDCO stands above CNMD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PDCO is the superior value option right now.
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PDCO or CNMD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of Patterson Cos. (PDCO - Free Report) and Conmed (CNMD - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Patterson Cos. has a Zacks Rank of #2 (Buy), while Conmed 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 PDCO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
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.
PDCO currently has a forward P/E ratio of 14.15, while CNMD has a forward P/E of 32.58. We also note that PDCO has a PEG ratio of 1.42. 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. CNMD currently has a PEG ratio of 2.65.
Another notable valuation metric for PDCO is its P/B ratio of 2.98. 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, CNMD has a P/B of 4.34.
Based on these metrics and many more, PDCO holds a Value grade of B, while CNMD has a Value grade of C.
PDCO stands above CNMD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PDCO is the superior value option right now.