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SDZNY vs. STVN: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Medical - Drugs sector have probably already heard of Sandoz Group AG Sponsored ADR (SDZNY - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Sandoz Group AG Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SDZNY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

SDZNY currently has a forward P/E ratio of 13.90, while STVN has a forward P/E of 39.17. We also note that SDZNY has a PEG ratio of 0.78. 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. STVN currently has a PEG ratio of 2.11.

Another notable valuation metric for SDZNY is its P/B ratio of 2.41. 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, STVN has a P/B of 4.41.

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

SDZNY has seen stronger estimate revision activity and sports more attractive valuation metrics than STVN, so it seems like value investors will conclude that SDZNY is the superior option right now.


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

Sandoz Group AG Sponsored ADR (SDZNY) - free report >>

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