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

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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 offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Phibro Animal Health and Boston Scientific are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

PAHC currently has a forward P/E ratio of 15.01, while BSX has a forward P/E of 31.96. We also note that PAHC has a PEG ratio of 1.17. 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 1.95.

Another notable valuation metric for PAHC is its P/B ratio of 5.38. 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 6.09.

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

PAHC has seen stronger estimate revision activity and sports more attractive valuation metrics than BSX, so it seems like value investors will conclude that PAHC is the superior option right now.


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