SONVY or IDXX: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Instruments stocks are likely familiar with SONOVA HOLDING (SONVY) and Idexx Laboratories (IDXX). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
SONOVA HOLDING and Idexx Laboratories are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
SONVY currently has a forward P/E ratio of 21.75, while IDXX has a forward P/E of 51.37. We also note that SONVY has a PEG ratio of 2.29. 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. IDXX currently has a PEG ratio of 2.96.
Another notable valuation metric for SONVY is its P/B ratio of 6.09. 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, IDXX has a P/B of 84.03.
Based on these metrics and many more, SONVY holds a Value grade of B, while IDXX has a Value grade of C.
Both SONVY and IDXX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SONVY is the superior value option right now.
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