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HLN or PODD: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Medical - Products sector have probably already heard of Haleon PLC Sponsored ADR (HLN - Free Report) and Insulet (PODD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Haleon PLC Sponsored ADR has a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HLN is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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.

HLN currently has a forward P/E ratio of 22.43, while PODD has a forward P/E of 76.64. We also note that HLN has a PEG ratio of 3.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PODD currently has a PEG ratio of 4.35.

Another notable valuation metric for HLN is its P/B ratio of 2.28. 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 16.32.

Based on these metrics and many more, HLN holds a Value grade of B, while PODD has a Value grade of D.

HLN sticks out from PODD in both our Zacks Rank and Style Scores models, so value investors will likely feel that HLN is the better option right now.


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