New Zealand markets closed
  • NZX 50

    +118.40 (+1.06%)

    +0.0050 (+0.84%)

    +0.0041 (+0.73%)

    +27.20 (+0.38%)
  • ASX 200

    +23.80 (+0.34%)
  • OIL

    -1.02 (-1.11%)
  • GOLD

    -1.00 (-0.05%)

    +144.67 (+0.98%)
  • FTSE

    +36.45 (+0.48%)
  • Dow Jones

    +62.72 (+0.19%)
  • DAX

    +122.26 (+0.80%)
  • Hang Seng

    +436.63 (+2.51%)
  • NIKKEI 225

    -14.90 (-0.05%)

    +0.7170 (+0.81%)

VREX vs. HAE: Which Stock Is the Better Value Option?

Investors interested in Medical - Products stocks are likely familiar with VAREX IMAGING (VREX) and Haemonetics (HAE). 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both VAREX IMAGING and Haemonetics are sporting a Zacks Rank of # 1 (Strong 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. However, value investors will care about much more than just this.

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.

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.

VREX currently has a forward P/E ratio of 19.33, while HAE has a forward P/E of 24.69. We also note that VREX has a PEG ratio of 0.64. 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. HAE currently has a PEG ratio of 2.47.

Another notable valuation metric for VREX is its P/B ratio of 1.71. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HAE has a P/B of 5.41.

These are just a few of the metrics contributing to VREX's Value grade of B and HAE's Value grade of D.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

VAREX IMAGING (VREX) : Free Stock Analysis Report

Haemonetics Corporation (HAE) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research