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PBH or BSX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Medical - Products sector might want to consider either Prestige Consumer Healthcare (PBH - Free Report) or 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Prestige Consumer Healthcare has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PBH likely has seen a stronger improvement to its earnings outlook than BSX has recently. 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.

PBH currently has a forward P/E ratio of 14.15, while BSX has a forward P/E of 27.98. We also note that PBH has a PEG ratio of 1.77. 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. BSX currently has a PEG ratio of 2.23.

Another notable valuation metric for PBH is its P/B ratio of 1.97. 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 4.30.

Based on these metrics and many more, PBH holds a Value grade of A, while BSX has a Value grade of C.

PBH sticks out from BSX in both our Zacks Rank and Style Scores models, so value investors will likely feel that PBH is the better option right now.


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