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PAHC 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 Phibro Animal Health (PAHC - Free Report) and Boston Scientific (BSX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Phibro Animal Health and Boston Scientific have a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

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 13.83, while BSX has a forward P/E of 34.86. We also note that PAHC has a PEG ratio of 0.53. 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 2.50.

Another notable valuation metric for PAHC is its P/B ratio of 4.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BSX has a P/B of 6.79.

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

Both PAHC and BSX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PAHC is the superior value option right now.


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