Back to top

Image: Bigstock

ESLOY or LZAGY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Medical - Products stocks have likely encountered both EssilorLuxottica Unsponsored ADR (ESLOY - Free Report) and Lonza Group Ag (LZAGY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

EssilorLuxottica Unsponsored ADR and Lonza Group Ag are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ESLOY currently has a forward P/E ratio of 26.50, while LZAGY has a forward P/E of 41.90. We also note that ESLOY has a PEG ratio of 2.32. 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. LZAGY currently has a PEG ratio of 2.69.

Another notable valuation metric for ESLOY is its P/B ratio of 2.23. 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, LZAGY has a P/B of 4.05.

Based on these metrics and many more, ESLOY holds a Value grade of B, while LZAGY has a Value grade of C.

Both ESLOY and LZAGY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ESLOY is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lonza Group Ag (LZAGY) - free report >>

EssilorLuxottica Unsponsored ADR (ESLOY) - free report >>

Published in