COO or SAUHY: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Medical - Dental Supplies sector have probably already heard of The Cooper Companies (COO) and Straumann Holding AG (SAUHY). 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 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, The Cooper Companies has a Zacks Rank of #2 (Buy), while Straumann Holding AG has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that COO likely has seen a stronger improvement to its earnings outlook than SAUHY has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

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.

COO currently has a forward P/E ratio of 15.65, while SAUHY has a forward P/E of 25.50. We also note that COO has a PEG ratio of 1.86. 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. SAUHY currently has a PEG ratio of 2.17.

Another notable valuation metric for COO is its P/B ratio of 1.68. 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, SAUHY has a P/B of 6.62.

These metrics, and several others, help COO earn a Value grade of B, while SAUHY has been given a Value grade of C.

COO has seen stronger estimate revision activity and sports more attractive valuation metrics than SAUHY, so it seems like value investors will conclude that COO is the superior option right now.

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The Cooper Companies, Inc. (COO): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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