Yahoo Finance ESLOY vs. LMAT: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Products stocks have likely encountered both EssilorLuxottica Unsponsored ADR (ESLOY) and LeMaitre Vascular (LMAT). 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 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 LeMaitre Vascular has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ESLOY has an improving earnings outlook. But this is only part of the picture for value investors.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ESLOY currently has a forward P/E ratio of 30.45, while LMAT has a forward P/E of 43.81. We also note that ESLOY has a PEG ratio of 1.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LMAT currently has a PEG ratio of 4.38.
Another notable valuation metric for ESLOY is its P/B ratio of 1.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LMAT has a P/B of 3.97.
Based on these metrics and many more, ESLOY holds a Value grade of B, while LMAT has a Value grade of D.
ESLOY has seen stronger estimate revision activity and sports more attractive valuation metrics than LMAT, so it seems like value investors will conclude that ESLOY is the superior option right now.
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EssilorLuxottica Unsponsored ADR (ESLOY) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
