Investors looking for stocks in the Medical - Products sector might want to consider either PetIQ (PETQ) or 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, PetIQ has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PETQ likely has seen a stronger improvement to its earnings outlook than BSX has recently. But this is just one factor that value investors are interested in.
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.
PETQ currently has a forward P/E ratio of 22.07, while BSX has a forward P/E of 30.98. We also note that PETQ has a PEG ratio of 0.88. 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 3.18.
Another notable valuation metric for PETQ is its P/B ratio of 2.46. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BSX has a P/B of 3.76.
Based on these metrics and many more, PETQ holds a Value grade of A, while BSX has a Value grade of D.
PETQ 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 PETQ is likely the superior value option right now.
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PetIQ, Inc. (PETQ) : Free Stock Analysis Report
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