PHG vs. RMD: Which Stock Should Value Investors Buy Now?

Core Insights - Investors in the Medical - Products sector should consider Royal Philips (PHG) and ResMed (RMD) for potential value opportunities [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] Valuation Metrics - PHG has a forward P/E ratio of 19.96, while RMD has a higher forward P/E of 27.95 [5] - The PEG ratio for PHG is 1.04, suggesting better value relative to its expected EPS growth compared to RMD's PEG ratio of 2.05 [5] - PHG's P/B ratio stands at 2.32, significantly lower than RMD's P/B ratio of 7.23, indicating a more favorable market value versus book value for PHG [6] Value Grades - Based on various valuation metrics, PHG is assigned a Value grade of A, while RMD receives a Value grade of C, highlighting PHG as the superior value option at present [6][7]