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AHCO vs. BSX: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - Products stocks have likely encountered both AdaptHealth Corp. (AHCO - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

AdaptHealth Corp. has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that AHCO likely has seen a stronger improvement to its earnings outlook than BSX has recently. But this is just one factor that value investors are interested in.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

AHCO currently has a forward P/E ratio of 11.14, while BSX has a forward P/E of 30.66. We also note that AHCO has a PEG ratio of 0.64. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BSX currently has a PEG ratio of 2.42.

Another notable valuation metric for AHCO is its P/B ratio of 0.89. 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 5.18.

These are just a few of the metrics contributing to AHCO's Value grade of A and BSX's Value grade of D.

AHCO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AHCO is likely the superior value option right now.


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