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USNA 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 USANA Health Sciences (USNA - Free Report) or Stevanato Group (STVN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

USANA Health Sciences and Stevanato Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

USNA currently has a forward P/E ratio of 11.67, while STVN has a forward P/E of 42.73. We also note that USNA has a PEG ratio of 0.97. 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 2.30.

Another notable valuation metric for USNA is its P/B ratio of 1.08. 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 4.89.

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

USNA stands above STVN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that USNA is the superior value option right now.


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

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