FMS or MASI: Which Is the Better Value Stock Right Now?

Core Insights - Investors in the Medical - Instruments sector may consider Fresenius (FMS) or Masimo (MASI) as potential undervalued stocks [1] Valuation Metrics - Fresenius has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Masimo, which has a Zacks Rank of 4 (Sell) [3] - FMS has a forward P/E ratio of 9.26, significantly lower than MASI's forward P/E of 23.98, suggesting that FMS may be undervalued [5] - The PEG ratio for FMS is 0.73, while MASI's PEG ratio is 1.41, indicating that FMS has a better valuation relative to its expected earnings growth [5] - FMS has a P/B ratio of 0.82, contrasting with MASI's P/B of 9.15, further supporting the notion that FMS is undervalued [6] - Based on these metrics, FMS has a Value grade of B, while MASI has a Value grade of C, indicating a stronger valuation profile for FMS [6] Earnings Outlook - FMS is currently exhibiting an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]