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PAHC or SRDX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Products stocks have likely encountered both Phibro Animal Health (PAHC - Free Report) and SurModics (SRDX - 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.
Both Phibro Animal Health and SurModics have a Zacks Rank of # 2 (Buy) right now. 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PAHC currently has a forward P/E ratio of 21.22, while SRDX has a forward P/E of 161.81. We also note that PAHC has a PEG ratio of 2. 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. SRDX currently has a PEG ratio of 16.18.
Another notable valuation metric for PAHC is its P/B ratio of 4.76. 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, SRDX has a P/B of 5.97.
Based on these metrics and many more, PAHC holds a Value grade of B, while SRDX has a Value grade of F.
Both PAHC and SRDX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PAHC is the superior value option right now.
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PAHC or SRDX: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Products stocks have likely encountered both Phibro Animal Health (PAHC - Free Report) and SurModics (SRDX - 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.
Both Phibro Animal Health and SurModics have a Zacks Rank of # 2 (Buy) right now. 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PAHC currently has a forward P/E ratio of 21.22, while SRDX has a forward P/E of 161.81. We also note that PAHC has a PEG ratio of 2. 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. SRDX currently has a PEG ratio of 16.18.
Another notable valuation metric for PAHC is its P/B ratio of 4.76. 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, SRDX has a P/B of 5.97.
Based on these metrics and many more, PAHC holds a Value grade of B, while SRDX has a Value grade of F.
Both PAHC and SRDX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PAHC is the superior value option right now.