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TFX vs. SONVY: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - Instruments stocks have likely encountered both Teleflex (TFX - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Teleflex has a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that TFX likely has seen a stronger improvement to its earnings outlook than SONVY has recently. But this is only part of the picture 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 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.

TFX currently has a forward P/E ratio of 15.40, while SONVY has a forward P/E of 25.73. We also note that TFX has a PEG ratio of 2.05. 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. SONVY currently has a PEG ratio of 2.94.

Another notable valuation metric for TFX is its P/B ratio of 2.21. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SONVY has a P/B of 7.73.

These are just a few of the metrics contributing to TFX's Value grade of B and SONVY's Value grade of D.

TFX has seen stronger estimate revision activity and sports more attractive valuation metrics than SONVY, so it seems like value investors will conclude that TFX is the superior option right now.


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