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 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.

Right now, Phibro Animal Health is sporting a Zacks Rank of #1 (Strong Buy), while Stryker has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PAHC likely has seen a stronger improvement to its earnings outlook than SYK has recently. But this is just one factor that value investors are interested in.

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.

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 11.44, while SYK has a forward P/E of 28.97. We also note that PAHC has a PEG ratio of 0.44. 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 2.95.

Another notable valuation metric for PAHC is its P/B ratio of 3.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SYK has a P/B of 7.21.

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

PAHC stands above SYK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PAHC is the superior value option right now.

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

Stryker Corporation (SYK) : Free Stock Analysis Report

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

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