Investors looking for stocks in the Medical - Products sector might want to consider either ResMed (RMD) or LeMaitre Vascular (LMAT). 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 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.

ResMed and LeMaitre Vascular are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.

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.

RMD currently has a forward P/E ratio of 26.89, while LMAT has a forward P/E of 55.30. We also note that RMD has a PEG ratio of 1.82. 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. LMAT currently has a PEG ratio of 2.63.

Another notable valuation metric for RMD is its P/B ratio of 7.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LMAT has a P/B of 7.27.

These are just a few of the metrics contributing to RMD's Value grade of B and LMAT's Value grade of C.

Both RMD and LMAT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RMD is the superior value option right now.

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ResMed Inc. (RMD) : Free Stock Analysis Report

LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report

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