Yahoo Finance ESLOY vs. PODD: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Products sector have probably already heard of EssilorLuxottica Unsponsored ADR (ESLOY) and Insulet (PODD). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, EssilorLuxottica Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while Insulet has a Zacks Rank of #3 (Hold). 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 factor that value investors are interested in.
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.
ESLOY currently has a forward P/E ratio of 28.61, while PODD has a forward P/E of 65.63. We also note that ESLOY has a PEG ratio of 2.51. 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. PODD currently has a PEG ratio of 3.67.
Another notable valuation metric for ESLOY is its P/B ratio of 2.41. 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, PODD has a P/B of 18.06.
These are just a few of the metrics contributing to ESLOY's Value grade of B and PODD's Value grade of D.
ESLOY 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 ESLOY is likely the superior value option right now.
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EssilorLuxottica Unsponsored ADR (ESLOY) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
