Investors looking for stocks in the Medical - Products sector might want to consider either Phibro Animal Health (PAHC) or Abbott (ABT). 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Phibro Animal Health is sporting a Zacks Rank of #1 (Strong Buy), while Abbott 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 ABT has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 14.71, while ABT has a forward P/E of 25. We also note that PAHC has a PEG ratio of 0.57. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABT currently has a PEG ratio of 2.75.

Another notable valuation metric for PAHC is its P/B ratio of 3.64. 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, ABT has a P/B of 5.06.

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

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

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