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PAHC vs. SYK: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Medical - Products sector might want to consider either Phibro Animal Health (PAHC - Free Report) or Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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, Phibro Animal Health is sporting a Zacks Rank of #2 (Buy), while Stryker has a Zacks Rank of #3 (Hold). This means that PAHC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
PAHC currently has a forward P/E ratio of 23.04, while SYK has a forward P/E of 27.45. We also note that PAHC has a PEG ratio of 2.17. 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. SYK currently has a PEG ratio of 2.86.
Another notable valuation metric for PAHC is its P/B ratio of 5.46. 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, SYK has a P/B of 7.03.
These are just a few of the metrics contributing to PAHC's Value grade of B and SYK's Value grade of C.
PAHC stands above SYK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PAHC is the superior value option right now.
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PAHC vs. SYK: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical - Products sector might want to consider either Phibro Animal Health (PAHC - Free Report) or Stryker (SYK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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, Phibro Animal Health is sporting a Zacks Rank of #2 (Buy), while Stryker has a Zacks Rank of #3 (Hold). This means that PAHC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
PAHC currently has a forward P/E ratio of 23.04, while SYK has a forward P/E of 27.45. We also note that PAHC has a PEG ratio of 2.17. 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. SYK currently has a PEG ratio of 2.86.
Another notable valuation metric for PAHC is its P/B ratio of 5.46. 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, SYK has a P/B of 7.03.
These are just a few of the metrics contributing to PAHC's Value grade of B and SYK's Value grade of C.
PAHC stands above SYK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PAHC is the superior value option right now.