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HAE or BSX: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Products stocks have likely encountered both Haemonetics (HAE - Free Report) and Boston Scientific (BSX - Free Report) . 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.

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 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.

Right now, both Haemonetics 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.

HAE currently has a forward P/E ratio of 16.13, while BSX has a forward P/E of 34.63. We also note that HAE has a PEG ratio of 1.34. 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 2.75.

Another notable valuation metric for HAE is its P/B ratio of 4.16. 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, BSX has a P/B of 5.94.

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

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


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