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GRFS vs. STVN: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Medical - Drugs sector might want to consider either Grifols (GRFS - Free Report) or Stevanato Group (STVN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Grifols is sporting a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GRFS 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.

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.

GRFS currently has a forward P/E ratio of 8.39, while STVN has a forward P/E of 39.52. We also note that GRFS has a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STVN currently has a PEG ratio of 2.13.

Another notable valuation metric for GRFS is its P/B ratio of 0.65. 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 4.51.

These metrics, and several others, help GRFS earn a Value grade of A, while STVN has been given a Value grade of C.

GRFS sticks out from STVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that GRFS is the better option right now.


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Grifols, S.A. (GRFS) - free report >>

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

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