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

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Investors interested in Medical - Products stocks are likely familiar with Phibro Animal Health (PAHC - Free Report) and Boston Scientific (BSX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Phibro Animal Health has a Zacks Rank of #1 (Strong Buy), while Boston Scientific has a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PAHC is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

PAHC currently has a forward P/E ratio of 13.32, while BSX has a forward P/E of 35.50. We also note that PAHC has a PEG ratio of 0.51. 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 2.69.

Another notable valuation metric for PAHC is its P/B ratio of 4.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BSX has a P/B of 6.82.

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

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


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