FMS vs. SMLR: Which Stock Should Value Investors Buy Now?
Investors interested in Medical - Instruments stocks are likely familiar with Fresenius (FMS) and Semler Scientific Inc. (SMLR). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Fresenius and Semler Scientific Inc. have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
FMS currently has a forward P/E ratio of 16.62, while SMLR has a forward P/E of 54.76. We also note that FMS has a PEG ratio of 2.17. 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. SMLR currently has a PEG ratio of 2.19.
Another notable valuation metric for FMS is its P/B ratio of 1.76. 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, SMLR has a P/B of 21.15.
Based on these metrics and many more, FMS holds a Value grade of A, while SMLR has a Value grade of D.
Both FMS and SMLR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FMS is the superior value option right now.
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Fresenius Medical Care AG Co. KGaA (FMS) : Free Stock Analysis Report
Semler Scientific Inc. (SMLR) : Free Stock Analysis Report
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