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

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Investors interested in stocks from the Medical - Drugs sector have probably already heard of Takeda Pharmaceutical Co. (TAK - Free Report) and Stevanato Group (STVN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Takeda Pharmaceutical Co. and Stevanato Group are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that TAK likely has seen a stronger improvement to its earnings outlook than STVN has recently. But this is just one piece of the puzzle 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 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.

TAK currently has a forward P/E ratio of 25.25, while STVN has a forward P/E of 46.35. We also note that TAK has a PEG ratio of 3.54. 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. STVN currently has a PEG ratio of 4.32.

Another notable valuation metric for TAK is its P/B ratio of 0.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, STVN has a P/B of 7.45.

These metrics, and several others, help TAK earn a Value grade of B, while STVN has been given a Value grade of D.

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


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Takeda Pharmaceutical Co. (TAK) - free report >>

Stevanato Group S.p.A. (STVN) - free report >>

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