Back to top

Image: Bigstock

LNTH vs. CLPBY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Medical - Products sector have probably already heard of Lantheus Holdings (LNTH - Free Report) and Coloplast A/S (CLPBY - 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.

Lantheus Holdings has a Zacks Rank of #2 (Buy), while Coloplast A/S has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that LNTH likely has seen a stronger improvement to its earnings outlook than CLPBY has recently. But this is just one factor that value investors are interested in.

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 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.

LNTH currently has a forward P/E ratio of 20.91, while CLPBY has a forward P/E of 34.43. We also note that LNTH has a PEG ratio of 1.74. 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. CLPBY currently has a PEG ratio of 3.44.

Another notable valuation metric for LNTH is its P/B ratio of 13.08. 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, CLPBY has a P/B of 25.75.

Based on these metrics and many more, LNTH holds a Value grade of B, while CLPBY has a Value grade of D.

LNTH sticks out from CLPBY in both our Zacks Rank and Style Scores models, so value investors will likely feel that LNTH is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lantheus Holdings, Inc. (LNTH) - free report >>

Coloplast A/S Sponsored ADR (CLPBY) - free report >>

Published in