Investors looking for stocks in the Medical Services sector might want to consider either Pediatrix Medical Group (MD) or Avantor, Inc. (AVTR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Pediatrix Medical Group has a Zacks Rank of #1 (Strong Buy), while Avantor, Inc. has a Zacks Rank of #5 (Strong Sell) right now. This means that MD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

MD currently has a forward P/E ratio of 12.37, while AVTR has a forward P/E of 23.32. We also note that MD has a PEG ratio of 2.21. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AVTR currently has a PEG ratio of 2.78.

Another notable valuation metric for MD is its P/B ratio of 1.89. 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, AVTR has a P/B of 2.82.

These metrics, and several others, help MD earn a Value grade of A, while AVTR has been given a Value grade of D.

MD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MD is likely the superior value option right now.

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