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XRAY vs. MMSI: Which Stock Is the Better Value Option?
ZACKSยท2025-06-16 16:41

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider Dentsply International (XRAY) as a potentially undervalued stock compared to Merit Medical (MMSI) [1] Group 1: Company Rankings and Valuation Metrics - Dentsply International has a Zacks Rank of 2 (Buy), while Merit Medical has a Zacks Rank of 4 (Sell), indicating a more favorable earnings estimate revision trend for XRAY [3] - XRAY has a forward P/E ratio of 8.25, significantly lower than MMSI's forward P/E of 27.73, suggesting XRAY may be undervalued [5] - The PEG ratio for XRAY is 1.12, while MMSI's PEG ratio is 2.70, further indicating XRAY's better valuation relative to expected earnings growth [5] Group 2: Additional Valuation Metrics - XRAY's P/B ratio is 1.55, compared to MMSI's P/B of 3.85, highlighting XRAY's more favorable market value relative to its book value [6] - These metrics contribute to XRAY's Value grade of A and MMSI's Value grade of D, reinforcing the view that XRAY is the better investment option for value investors [6]