TFX or EW: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Instruments stocks have likely encountered both Teleflex (TFX) and Edwards Lifesciences (EW). 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.
Right now, Teleflex is sporting a Zacks Rank of #2 (Buy), while Edwards Lifesciences 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 TFX has an improving earnings outlook. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TFX currently has a forward P/E ratio of 16.94, while EW has a forward P/E of 26.58. We also note that TFX has a PEG ratio of 2.15. 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. EW currently has a PEG ratio of 3.
Another notable valuation metric for TFX is its P/B ratio of 2.45. 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, EW has a P/B of 5.56.
These are just a few of the metrics contributing to TFX's Value grade of B and EW's Value grade of D.
TFX sticks out from EW in both our Zacks Rank and Style Scores models, so value investors will likely feel that TFX is the better option right now.
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Teleflex Incorporated (TFX) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report