Investors interested in stocks from the Medical - Products sector have probably already heard of Phibro Animal Health (PAHC) and Stryker (SYK). But which of these two stocks presents investors with the better value opportunity right now? 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 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 has a Zacks Rank of #2 (Buy), while Stryker has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PAHC has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

PAHC currently has a forward P/E ratio of 13.50, while SYK has a forward P/E of 29.11. We also note that PAHC has a PEG ratio of 0.56. 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. SYK currently has a PEG ratio of 2.70.

Another notable valuation metric for PAHC is its P/B ratio of 3.43. 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, SYK has a P/B of 7.45.

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

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report

Stryker Corporation (SYK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research