Investors interested in Medical - Products stocks are likely familiar with 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Phibro Animal Health and Boston Scientific are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 11.28, while BSX has a forward P/E of 35.32. We also note that PAHC has a PEG ratio of 0.43. 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. BSX currently has a PEG ratio of 2.66.

Another notable valuation metric for PAHC is its P/B ratio of 3.42. 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 6.78.

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

Both PAHC and BSX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PAHC is 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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