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EYE vs. PODD: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Medical - Products sector might want to consider either National Vision (EYE - Free Report) or Insulet (PODD - 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, both National Vision and Insulet are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

EYE currently has a forward P/E ratio of 26.63, while PODD has a forward P/E of 61.65. We also note that EYE has a PEG ratio of 1.89. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PODD currently has a PEG ratio of 3.45.

Another notable valuation metric for EYE is its P/B ratio of 1.31. 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, PODD has a P/B of 16.99.

These metrics, and several others, help EYE earn a Value grade of A, while PODD has been given a Value grade of D.

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


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Insulet Corporation (PODD) - free report >>

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