ASRT vs. STVN: Which Stock Is the Better Value Option?

ASRT STVN

Investors with an interest in Medical - Drugs stocks have likely encountered both Assertio (ASRT - Free Report) and Stevanato Group (STVN - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Assertio has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASRT has an improving earnings outlook. But this is only part of the picture 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

ASRT currently has a forward P/E ratio of 4.42, while STVN has a forward P/E of 32.58. We also note that ASRT has a PEG ratio of 0.44. 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. STVN currently has a PEG ratio of 2.04.

Another notable valuation metric for ASRT is its P/B ratio of 0.80. 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, STVN has a P/B of 5.14.

These metrics, and several others, help ASRT earn a Value grade of A, while STVN has been given a Value grade of C.

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

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