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

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Investors interested in Medical - Products stocks are likely familiar with Prestige Consumer Healthcare (PBH - 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.

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. But this is only part of the picture 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.

PBH currently has a forward P/E ratio of 13.69, while BSX has a forward P/E of 26.97. We also note that PBH has a PEG ratio of 1.71. 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 2.15.

Another notable valuation metric for PBH is its P/B ratio of 1.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BSX has a P/B of 4.61.

These metrics, and several others, help PBH earn a Value grade of B, while BSX has been given a Value grade of D.

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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