Investors interested in Medical - Products stocks are likely familiar with Smith & Nephew (SNN) and GE HealthCare Technologies (GEHC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

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Currently, Smith & Nephew has a Zacks Rank of #2 (Buy), while GE HealthCare Technologies has a Zacks Rank of #5 (Strong Sell). This means that SNN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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.

SNN currently has a forward P/E ratio of 15.21, while GEHC has a forward P/E of 17.91. We also note that SNN has a PEG ratio of 0.92. 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. GEHC currently has a PEG ratio of 2.43.

Another notable valuation metric for SNN is its P/B ratio of 2.48. 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, GEHC has a P/B of 3.58.

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

SNN 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 SNN is likely the superior value option right now.

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Smith & Nephew SNATS, Inc. (SNN):Free Stock Analysis Report

GE HealthCare Technologies Inc. (GEHC):Free Stock Analysis Report

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

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