We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SGIOY or ZTS: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Medical - Drugs sector might want to consider either Shionogi & Co., Ltd. Unsponsored ADR (SGIOY - Free Report) or Zoetis (ZTS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Shionogi & Co., Ltd. Unsponsored ADR and Zoetis are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SGIOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
SGIOY currently has a forward P/E ratio of 12.10, while ZTS has a forward P/E of 25.44. We also note that SGIOY has a PEG ratio of 1.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZTS currently has a PEG ratio of 2.64.
Another notable valuation metric for SGIOY is its P/B ratio of 1.64. 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, ZTS has a P/B of 15.26.
These are just a few of the metrics contributing to SGIOY's Value grade of A and ZTS's Value grade of C.
SGIOY sticks out from ZTS in both our Zacks Rank and Style Scores models, so value investors will likely feel that SGIOY is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SGIOY or ZTS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Drugs sector might want to consider either Shionogi & Co., Ltd. Unsponsored ADR (SGIOY - Free Report) or Zoetis (ZTS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Shionogi & Co., Ltd. Unsponsored ADR and Zoetis are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SGIOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
SGIOY currently has a forward P/E ratio of 12.10, while ZTS has a forward P/E of 25.44. We also note that SGIOY has a PEG ratio of 1.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZTS currently has a PEG ratio of 2.64.
Another notable valuation metric for SGIOY is its P/B ratio of 1.64. 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, ZTS has a P/B of 15.26.
These are just a few of the metrics contributing to SGIOY's Value grade of A and ZTS's Value grade of C.
SGIOY sticks out from ZTS in both our Zacks Rank and Style Scores models, so value investors will likely feel that SGIOY is the better option right now.