Yahoo Finance AHCO vs. BSX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical - Products sector might want to consider either AdaptHealth Corp. (AHCO) or Boston Scientific (BSX). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
AdaptHealth Corp. has a Zacks Rank of #2 (Buy), while Boston Scientific has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that AHCO likely has seen a stronger improvement to its earnings outlook than BSX has recently. But this is only part of the picture 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.
AHCO currently has a forward P/E ratio of 12.58, while BSX has a forward P/E of 30.02. We also note that AHCO has a PEG ratio of 0.73. 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. BSX currently has a PEG ratio of 2.37.
Another notable valuation metric for AHCO is its P/B ratio of 1. 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 5.07.
These are just a few of the metrics contributing to AHCO's Value grade of A and BSX's Value grade of C.
AHCO stands above BSX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AHCO is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AdaptHealth Corp. (AHCO) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
