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PAHC vs. LMAT: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Products sector might want to consider either Phibro Animal Health (PAHC - Free Report) or LeMaitre Vascular (LMAT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Phibro Animal Health and LeMaitre Vascular are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PAHC has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

PAHC currently has a forward P/E ratio of 11.38, while LMAT has a forward P/E of 37.42. We also note that PAHC has a PEG ratio of 0.44. 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. LMAT currently has a PEG ratio of 2.14.

Another notable valuation metric for PAHC is its P/B ratio of 3.98. 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, LMAT has a P/B of 5.27.

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

PAHC stands above LMAT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PAHC is the superior value option right now.

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