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LZAGY vs. BSX: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Medical - Products sector have probably already heard of Lonza Group Ag (LZAGY - Free Report) and Boston Scientific (BSX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, both Lonza Group Ag and Boston Scientific are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

LZAGY currently has a forward P/E ratio of 20.06, while BSX has a forward P/E of 22.93. We also note that LZAGY has a PEG ratio of 2.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BSX currently has a PEG ratio of 2.27.

Another notable valuation metric for LZAGY is its P/B ratio of 3.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BSX has a P/B of 6.25.

These are just a few of the metrics contributing to LZAGY's Value grade of B and BSX's Value grade of D.

Both LZAGY and BSX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LZAGY is the superior value option right now.


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