Investors interested in Medical - Products stocks are likely familiar with Prestige Consumer Healthcare (PBH) 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both Prestige Consumer Healthcare and Boston Scientific are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PBH currently has a forward P/E ratio of 19.10, while BSX has a forward P/E of 37.25. We also note that PBH has a PEG ratio of 2.73. 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 2.81.

Another notable valuation metric for PBH is its P/B ratio of 2.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BSX has a P/B of 7.46.

These metrics, and several others, help PBH earn a Value grade of B, while BSX has been given a Value grade of D.

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

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Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report

Boston Scientific Corporation (BSX) : Free Stock Analysis Report

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