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QIPT vs. BSX: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Medical - Products sector have probably already heard of Quipt Home Medical Corp. (QIPT - Free Report) and Boston Scientific (BSX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Quipt Home Medical Corp. has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold) right now. This means that QIPT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

QIPT currently has a forward P/E ratio of 15.08, while BSX has a forward P/E of 26.87. We also note that QIPT has a PEG ratio of 1.51. 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 2.88.

Another notable valuation metric for QIPT is its P/B ratio of 3.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BSX has a P/B of 3.86.

These metrics, and several others, help QIPT earn a Value grade of A, while BSX has been given a Value grade of C.

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


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