Yahoo Finance ESLOY vs. LMAT: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Medical - Products sector might want to consider either EssilorLuxottica Unsponsored ADR (ESLOY) or LeMaitre Vascular (LMAT). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
EssilorLuxottica Unsponsored ADR and LeMaitre Vascular are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that ESLOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
ESLOY currently has a forward P/E ratio of 27.38, while LMAT has a forward P/E of 37.78. We also note that ESLOY has a PEG ratio of 1.30. 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. LMAT currently has a PEG ratio of 3.78.
Another notable valuation metric for ESLOY is its P/B ratio of 1.90. 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, LMAT has a P/B of 3.76.
These are just a few of the metrics contributing to ESLOY's Value grade of B and LMAT's Value grade of C.
ESLOY has seen stronger estimate revision activity and sports more attractive valuation metrics than LMAT, so it seems like value investors will conclude that ESLOY is the superior option right now.
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EssilorLuxottica Unsponsored ADR (ESLOY) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
