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GMED or SONVY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Instruments sector have probably already heard of Globus Medical (GMED - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Globus Medical has a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GMED 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 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GMED currently has a forward P/E ratio of 24.63, while SONVY has a forward P/E of 32.22. We also note that GMED has a PEG ratio of 1.93. 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. SONVY currently has a PEG ratio of 4.20.
Another notable valuation metric for GMED is its P/B ratio of 2.38. 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, SONVY has a P/B of 7.85.
Based on these metrics and many more, GMED holds a Value grade of B, while SONVY has a Value grade of D.
GMED sticks out from SONVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that GMED is the better option right now.
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GMED or SONVY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Instruments sector have probably already heard of Globus Medical (GMED - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Globus Medical has a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GMED 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 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GMED currently has a forward P/E ratio of 24.63, while SONVY has a forward P/E of 32.22. We also note that GMED has a PEG ratio of 1.93. 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. SONVY currently has a PEG ratio of 4.20.
Another notable valuation metric for GMED is its P/B ratio of 2.38. 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, SONVY has a P/B of 7.85.
Based on these metrics and many more, GMED holds a Value grade of B, while SONVY has a Value grade of D.
GMED sticks out from SONVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that GMED is the better option right now.