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

Core Viewpoint - Merit Medical (MMSI) is currently viewed as a better value opportunity compared to Align Technology (ALGN) based on various financial metrics and analyst outlooks [1][3]. Group 1: Zacks Rank and Analyst Outlook - MMSI has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while ALGN has a Zacks Rank of 3 (Hold) [1]. - The improving analyst outlook for MMSI suggests a more favorable investment environment compared to ALGN [3]. Group 2: Valuation Metrics - MMSI has a forward P/E ratio of 23.87, significantly lower than ALGN's forward P/E of 31.20, indicating that MMSI may be undervalued [2]. - The PEG ratio for MMSI is 2.12, while ALGN's PEG ratio is 2.49, suggesting that MMSI offers better value relative to its expected earnings growth [2]. - MMSI's P/B ratio stands at 3.72, compared to ALGN's P/B of 6.22, further supporting the notion that MMSI is a more attractive investment [2]. Group 3: Value Grades - Based on the analysis, MMSI has a Value grade of B, while ALGN has a Value grade of C, reinforcing the conclusion that MMSI is the superior value option at this time [3].