Yahoo Finance HAE vs. BSX: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Medical - Products sector might want to consider either Haemonetics (HAE) or Boston Scientific (BSX). 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Haemonetics and Boston Scientific are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HAE currently has a forward P/E ratio of 18.83, while BSX has a forward P/E of 33.16. We also note that HAE has a PEG ratio of 1.57. 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. BSX currently has a PEG ratio of 2.65.
Another notable valuation metric for HAE is its P/B ratio of 4.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BSX has a P/B of 5.61.
These are just a few of the metrics contributing to HAE's Value grade of B and BSX's Value grade of C.
Both HAE and BSX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HAE is the superior value option right now.
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Haemonetics Corporation (HAE) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
