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Investors interested in stocks from the Medical - Products sector have probably already heard of Prestige Consumer Healthcare (PBH) and Boston Scientific (BSX). 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.
Prestige Consumer Healthcare has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PBH is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
PBH currently has a forward P/E ratio of 17.06, while BSX has a forward P/E of 34.53. We also note that PBH has a PEG ratio of 2.13. 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 2.51.
Another notable valuation metric for PBH is its P/B ratio of 2.17. 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, BSX has a P/B of 6.73.
Based on these metrics and many more, PBH holds a Value grade of B, while BSX has a Value grade of D.
PBH sticks out from BSX in both our Zacks Rank and Style Scores models, so value investors will likely feel that PBH is the better option right now.
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Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report