Investors interested in stocks from the Medical - Products sector have probably already heard of Phibro Animal Health (PAHC) and Boston Scientific (BSX). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Phibro Animal Health and Boston Scientific are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that PAHC likely has seen a stronger improvement to its earnings outlook than BSX has recently. But this is only part of the picture 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 11.05, while BSX has a forward P/E of 34.88. We also note that PAHC has a PEG ratio of 0.42. 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 2.63.

Another notable valuation metric for PAHC is its P/B ratio of 3.52. 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 6.66.

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

PAHC 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 PAHC is likely the superior value option right now.

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

Boston Scientific Corporation (BSX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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