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PETQ or BLFS: Which Is the Better Value Stock Right Now?

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Investors interested in Medical - Products stocks are likely familiar with PetIQ (PETQ - Free Report) and BioLife Solutions, Inc. (BLFS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

PetIQ has a Zacks Rank of #2 (Buy), while BioLife Solutions, Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PETQ has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PETQ currently has a forward P/E ratio of 12.77, while BLFS has a forward P/E of 182.13. We also note that PETQ has a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BLFS currently has a PEG ratio of 18.21.

Another notable valuation metric for PETQ is its P/B ratio of 2.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BLFS has a P/B of 2.42.

These metrics, and several others, help PETQ earn a Value grade of A, while BLFS has been given a Value grade of D.

PETQ has seen stronger estimate revision activity and sports more attractive valuation metrics than BLFS, so it seems like value investors will conclude that PETQ is the superior option right now.


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