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BAYRY or NVO: Which Is the Better Value Stock Right Now?
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Investors interested in Large Cap Pharmaceuticals stocks are likely familiar with 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Bayer Aktiengesellschaft has a Zacks Rank of #2 (Buy), while Novo Nordisk has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that BAYRY likely has seen a stronger improvement to its earnings outlook than NVO has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
BAYRY currently has a forward P/E ratio of 6.52, while NVO has a forward P/E of 33.36. We also note that BAYRY has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVO currently has a PEG ratio of 1.81.
Another notable valuation metric for BAYRY is its P/B ratio of 1.27. 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 23.16.
These metrics, and several others, help BAYRY earn a Value grade of A, while NVO has been given a Value grade of D.
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 or NVO: Which Is the Better Value Stock Right Now?
Investors interested in Large Cap Pharmaceuticals stocks are likely familiar with 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Bayer Aktiengesellschaft has a Zacks Rank of #2 (Buy), while Novo Nordisk has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that BAYRY likely has seen a stronger improvement to its earnings outlook than NVO has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
BAYRY currently has a forward P/E ratio of 6.52, while NVO has a forward P/E of 33.36. We also note that BAYRY has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVO currently has a PEG ratio of 1.81.
Another notable valuation metric for BAYRY is its P/B ratio of 1.27. 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 23.16.
These metrics, and several others, help BAYRY earn a Value grade of A, while NVO has been given a Value grade of D.
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.