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COO or SAUHY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either The Cooper Companies (COO - Free Report) or Straumann Holding AG (SAUHY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both The Cooper Companies and Straumann Holding AG are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

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.

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.

COO currently has a forward P/E ratio of 17.61, while SAUHY has a forward P/E of 30.20. We also note that COO has a PEG ratio of 1.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAUHY currently has a PEG ratio of 2.11.

Another notable valuation metric for COO is its P/B ratio of 1.72. 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, SAUHY has a P/B of 8.76.

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

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


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The Cooper Companies, Inc. (COO) - free report >>

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