Yahoo Finance LH vs. COO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Labcorp (LH) or The Cooper Companies (COO). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Labcorp has a Zacks Rank of #2 (Buy), while The Cooper Companies has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LH has an improving earnings outlook. 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.
LH currently has a forward P/E ratio of 14.66, while COO has a forward P/E of 27.70. We also note that LH has a PEG ratio of 1.64. 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. COO currently has a PEG ratio of 2.54.
Another notable valuation metric for LH is its P/B ratio of 2.33. 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, COO has a P/B of 2.51.
These are just a few of the metrics contributing to LH's Value grade of A and COO's Value grade of C.
LH 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 LH is likely the superior value option right now.
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Labcorp (LH) : Free Stock Analysis Report
The Cooper Companies, Inc. (COO) : Free Stock Analysis Report
