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PFE or LLY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Pfizer (PFE - Free Report) or Eli Lilly (LLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Pfizer has a Zacks Rank of #2 (Buy), while Eli Lilly has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PFE likely has seen a stronger improvement to its earnings outlook than LLY has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PFE currently has a forward P/E ratio of 7.57, while LLY has a forward P/E of 32.57. We also note that PFE has a PEG ratio of 0.84. 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. LLY currently has a PEG ratio of 1.04.
Another notable valuation metric for PFE is its P/B ratio of 1.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LLY has a P/B of 43.02.
These metrics, and several others, help PFE earn a Value grade of A, while LLY has been given a Value grade of C.
PFE stands above LLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PFE is the superior value option right now.
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PFE or LLY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Pfizer (PFE - Free Report) or Eli Lilly (LLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Pfizer has a Zacks Rank of #2 (Buy), while Eli Lilly has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PFE likely has seen a stronger improvement to its earnings outlook than LLY has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PFE currently has a forward P/E ratio of 7.57, while LLY has a forward P/E of 32.57. We also note that PFE has a PEG ratio of 0.84. 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. LLY currently has a PEG ratio of 1.04.
Another notable valuation metric for PFE is its P/B ratio of 1.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LLY has a P/B of 43.02.
These metrics, and several others, help PFE earn a Value grade of A, while LLY has been given a Value grade of C.
PFE stands above LLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PFE is the superior value option right now.