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TAK or CTLT: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Drugs stocks have likely encountered both Takeda Pharmaceutical Co. (TAK - Free Report) and Catalent (CTLT - 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.
Right now, Takeda Pharmaceutical Co. is sporting a Zacks Rank of #1 (Strong Buy), while Catalent has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that TAK likely has seen a stronger improvement to its earnings outlook than CTLT 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 8.54, while CTLT has a forward P/E of 101.73. We also note that TAK has a PEG ratio of 3.02. 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. CTLT currently has a PEG ratio of 3.07.
Another notable valuation metric for TAK is its P/B ratio of 0.91. 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, CTLT has a P/B of 2.74.
These are just a few of the metrics contributing to TAK's Value grade of A and CTLT's Value grade of D.
TAK sticks out from CTLT 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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TAK or CTLT: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Drugs stocks have likely encountered both Takeda Pharmaceutical Co. (TAK - Free Report) and Catalent (CTLT - 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.
Right now, Takeda Pharmaceutical Co. is sporting a Zacks Rank of #1 (Strong Buy), while Catalent has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that TAK likely has seen a stronger improvement to its earnings outlook than CTLT 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 8.54, while CTLT has a forward P/E of 101.73. We also note that TAK has a PEG ratio of 3.02. 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. CTLT currently has a PEG ratio of 3.07.
Another notable valuation metric for TAK is its P/B ratio of 0.91. 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, CTLT has a P/B of 2.74.
These are just a few of the metrics contributing to TAK's Value grade of A and CTLT's Value grade of D.
TAK sticks out from CTLT in both our Zacks Rank and Style Scores models, so value investors will likely feel that TAK is the better option right now.