ALGN vs. SAUHY: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider Align Technology (ALGN) and Straumann Holding AG (SAUHY) as potential value opportunities, with ALGN currently presenting a superior value option based on various valuation metrics [1][7]. Valuation Metrics - Both ALGN and SAUHY hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - ALGN has a forward P/E ratio of 18.33, while SAUHY has a higher forward P/E of 30.67, suggesting that ALGN may be undervalued compared to SAUHY [5]. - The PEG ratio for ALGN is 1.63, indicating a more favorable valuation relative to its expected earnings growth compared to SAUHY's PEG ratio of 2.14 [5]. - ALGN's P/B ratio is 3.65, significantly lower than SAUHY's P/B ratio of 8.9, further supporting ALGN's position as a better value stock [6]. - Based on these valuation figures, ALGN earns a Value grade of B, while SAUHY receives a Value grade of D, highlighting the relative undervaluation of ALGN [6].