Back to top

Image: Bigstock

ASRT or CORT: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Medical - Drugs sector might want to consider either Assertio (ASRT - Free Report) or Corcept Therapeutics (CORT - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Assertio has a Zacks Rank of #2 (Buy), while Corcept Therapeutics has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASRT likely has seen a stronger improvement to its earnings outlook than CORT has recently. However, value investors will care about much more than just this.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ASRT currently has a forward P/E ratio of 5.94, while CORT has a forward P/E of 30.73. We also note that ASRT has a PEG ratio of 0.59. 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. CORT currently has a PEG ratio of 2.73.

Another notable valuation metric for ASRT is its P/B ratio of 1.02. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CORT has a P/B of 6.57.

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

ASRT has seen stronger estimate revision activity and sports more attractive valuation metrics than CORT, so it seems like value investors will conclude that ASRT is the superior option right now.


See More Zacks Research for These Tickers


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


Corcept Therapeutics Incorporated (CORT) - free report >>

Assertio Holdings, Inc. (ASRT) - free report >>

Published in