MMSI vs. SAUHY: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The comparison between Merit Medical (MMSI) and Straumann Holding AG (SAUHY) indicates that MMSI is currently viewed as the better option for investors seeking undervalued stocks due to its stronger earnings estimate revisions and favorable valuation metrics [1][3]. Group 1: Zacks Rank and Earnings Estimates - MMSI has a Zacks Rank of 2 (Buy), while SAUHY has a Zacks Rank of 3 (Hold), suggesting that MMSI's earnings estimate revision activity is more favorable [3]. - The Zacks Rank system emphasizes stocks with strong earnings estimate revision trends, which is a positive indicator for MMSI [2]. Group 2: Valuation Metrics - MMSI has a forward P/E ratio of 20.07, compared to SAUHY's forward P/E of 28.57, indicating that MMSI may be undervalued relative to SAUHY [5]. - The PEG ratio for MMSI is 1.95, while SAUHY's PEG ratio is 2.78, further supporting the notion that MMSI offers better value based on expected EPS growth [5]. - MMSI's P/B ratio stands at 3.15, significantly lower than SAUHY's P/B of 8.14, reinforcing the argument for MMSI being the more attractive investment option [6]. Group 3: Value Grades - Based on various valuation metrics, MMSI holds a Value grade of B, while SAUHY has a Value grade of C, indicating that MMSI is perceived as a better value investment [6].