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BAYRY vs. NVO: Which Stock Is the Better Value Option?
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Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both Bayer Aktiengesellschaft (BAYRY - Free Report) and Novo Nordisk (NVO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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.
Currently, Bayer Aktiengesellschaft has a Zacks Rank of #2 (Buy), while Novo Nordisk has a Zacks Rank of #3 (Hold). This means that BAYRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BAYRY currently has a forward P/E ratio of 6.89, while NVO has a forward P/E of 30.28. We also note that BAYRY has a PEG ratio of 1.82. 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. NVO currently has a PEG ratio of 2.31.
Another notable valuation metric for BAYRY is its P/B ratio of 1.46. 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, NVO has a P/B of 21.10.
These metrics, and several others, help BAYRY earn a Value grade of B, while NVO has been given a Value grade of C.
BAYRY sticks out from NVO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BAYRY is the better option right now.
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BAYRY vs. NVO: Which Stock Is the Better Value Option?
Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both Bayer Aktiengesellschaft (BAYRY - Free Report) and Novo Nordisk (NVO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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.
Currently, Bayer Aktiengesellschaft has a Zacks Rank of #2 (Buy), while Novo Nordisk has a Zacks Rank of #3 (Hold). This means that BAYRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BAYRY currently has a forward P/E ratio of 6.89, while NVO has a forward P/E of 30.28. We also note that BAYRY has a PEG ratio of 1.82. 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. NVO currently has a PEG ratio of 2.31.
Another notable valuation metric for BAYRY is its P/B ratio of 1.46. 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, NVO has a P/B of 21.10.
These metrics, and several others, help BAYRY earn a Value grade of B, while NVO has been given a Value grade of C.
BAYRY sticks out from NVO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BAYRY is the better option right now.