We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MDT or PODD: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Medical - Products stocks are likely familiar with Medtronic (MDT - Free Report) and Insulet (PODD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Medtronic has a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MDT likely has seen a stronger improvement to its earnings outlook than PODD has recently. 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.
MDT currently has a forward P/E ratio of 16.59, while PODD has a forward P/E of 122.31. We also note that MDT has a PEG ratio of 2.70. 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. PODD currently has a PEG ratio of 3.43.
Another notable valuation metric for MDT is its P/B ratio of 2.17. 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, PODD has a P/B of 24.88.
These are just a few of the metrics contributing to MDT's Value grade of B and PODD's Value grade of D.
MDT sticks out from PODD in both our Zacks Rank and Style Scores models, so value investors will likely feel that MDT is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MDT or PODD: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Products stocks are likely familiar with Medtronic (MDT - Free Report) and Insulet (PODD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Medtronic has a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MDT likely has seen a stronger improvement to its earnings outlook than PODD has recently. 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.
MDT currently has a forward P/E ratio of 16.59, while PODD has a forward P/E of 122.31. We also note that MDT has a PEG ratio of 2.70. 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. PODD currently has a PEG ratio of 3.43.
Another notable valuation metric for MDT is its P/B ratio of 2.17. 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, PODD has a P/B of 24.88.
These are just a few of the metrics contributing to MDT's Value grade of B and PODD's Value grade of D.
MDT sticks out from PODD in both our Zacks Rank and Style Scores models, so value investors will likely feel that MDT is the better option right now.