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USNA or STVN: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Medical - Drugs sector have probably already heard of USANA Health Sciences (USNA - Free Report) and Stevanato Group (STVN - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

USANA Health Sciences has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that USNA likely has seen a stronger improvement to its earnings outlook than STVN has recently. But this is only part of the picture 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

USNA currently has a forward P/E ratio of 16.56, while STVN has a forward P/E of 42.39. We also note that USNA has a PEG ratio of 1.38. 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. STVN currently has a PEG ratio of 3.12.

Another notable valuation metric for USNA is its P/B ratio of 1.75. 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, STVN has a P/B of 6.81.

Based on these metrics and many more, USNA holds a Value grade of A, while STVN has a Value grade of C.

USNA 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 USNA is likely the superior value option right now.


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USANA Health Sciences, Inc. (USNA) - free report >>

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

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