Investors with an interest in Medical - Products stocks have likely encountered both Haemonetics (HAE) and Stryker (SYK). 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 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.

Currently, Haemonetics has a Zacks Rank of #2 (Buy), while Stryker has a Zacks Rank of #3 (Hold). This means that HAE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

HAE currently has a forward P/E ratio of 17.88, while SYK has a forward P/E of 30.75. We also note that HAE has a PEG ratio of 1.27. 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. SYK currently has a PEG ratio of 2.80.

Another notable valuation metric for HAE is its P/B ratio of 4.78. 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, SYK has a P/B of 7.02.

These are just a few of the metrics contributing to HAE's Value grade of B and SYK's Value grade of C.

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

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