雅虎香港財經 BDX vs. MMSI: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Becton Dickinson (BDX) and Merit Medical (MMSI). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Becton Dickinson has a Zacks Rank of #2 (Buy), while Merit Medical has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that BDX likely has seen a stronger improvement to its earnings outlook than MMSI has recently. 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.
BDX currently has a forward P/E ratio of 16.83, while MMSI has a forward P/E of 28.89. We also note that BDX has a PEG ratio of 1.80. 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. MMSI currently has a PEG ratio of 2.41.
Another notable valuation metric for BDX is its P/B ratio of 2.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MMSI has a P/B of 4.33.
Based on these metrics and many more, BDX holds a Value grade of B, while MMSI has a Value grade of C.
BDX stands above MMSI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BDX is the superior value option right now.
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Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report
