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GRFS or ZTS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Drugs sector might want to consider either Grifols (GRFS - Free Report) or Zoetis (ZTS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Grifols has a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GRFS likely has seen a stronger improvement to its earnings outlook than ZTS has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GRFS currently has a forward P/E ratio of 14.97, while ZTS has a forward P/E of 36.14. We also note that GRFS has a PEG ratio of 0.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ZTS currently has a PEG ratio of 3.16.
Another notable valuation metric for GRFS is its P/B ratio of 0.79. 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, ZTS has a P/B of 17.69.
Based on these metrics and many more, GRFS holds a Value grade of A, while ZTS has a Value grade of D.
GRFS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GRFS is likely the superior value option right now.
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GRFS or ZTS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Drugs sector might want to consider either Grifols (GRFS - Free Report) or Zoetis (ZTS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Grifols has a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GRFS likely has seen a stronger improvement to its earnings outlook than ZTS has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GRFS currently has a forward P/E ratio of 14.97, while ZTS has a forward P/E of 36.14. We also note that GRFS has a PEG ratio of 0.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ZTS currently has a PEG ratio of 3.16.
Another notable valuation metric for GRFS is its P/B ratio of 0.79. 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, ZTS has a P/B of 17.69.
Based on these metrics and many more, GRFS holds a Value grade of A, while ZTS has a Value grade of D.
GRFS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GRFS is likely the superior value option right now.