Back to top

Image: Bigstock

HAE vs. BSX: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Medical - Products sector have probably already heard of Haemonetics (HAE - Free Report) and Boston Scientific (BSX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Haemonetics and Boston Scientific are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

HAE currently has a forward P/E ratio of 16.65, while BSX has a forward P/E of 33. We also note that HAE has a PEG ratio of 1.39. 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. BSX currently has a PEG ratio of 2.62.

Another notable valuation metric for HAE is its P/B ratio of 4.29. 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, BSX has a P/B of 5.66.

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

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


See More Zacks Research for These Tickers


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


Boston Scientific Corporation (BSX) - free report >>

Haemonetics Corporation (HAE) - free report >>

Published in