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HSIC vs. COO: Which Stock Should Value Investors Buy Now?

Zacks Equity Research
·2 min read

Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Henry Schein (HSIC) and The Cooper Companies (COO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Henry Schein and The Cooper Companies are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HSIC is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

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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.

HSIC currently has a forward P/E ratio of 16.97, while COO has a forward P/E of 29.33. We also note that HSIC has a PEG ratio of 1.50. 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. COO currently has a PEG ratio of 2.67.

Another notable valuation metric for HSIC is its P/B ratio of 2.67. 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, COO has a P/B of 2.92.

Based on these metrics and many more, HSIC holds a Value grade of A, while COO has a Value grade of C.

HSIC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HSIC is likely the superior value option right now.


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Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
 
The Cooper Companies, Inc. (COO) : Free Stock Analysis Report
 
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Zacks Investment Research