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SDZNY vs. ZTS: 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 Sandoz Group AG Sponsored ADR (SDZNY - Free Report) or Zoetis (ZTS - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Sandoz Group AG Sponsored ADR has a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SDZNY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
SDZNY currently has a forward P/E ratio of 19.01, while ZTS has a forward P/E of 23.76. We also note that SDZNY has a PEG ratio of 1.06. 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. ZTS currently has a PEG ratio of 2.43.
Another notable valuation metric for SDZNY is its P/B ratio of 3.26. 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, ZTS has a P/B of 13.43.
These metrics, and several others, help SDZNY earn a Value grade of B, while ZTS has been given a Value grade of C.
SDZNY stands above ZTS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SDZNY is the superior value option right now.
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SDZNY vs. ZTS: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical - Drugs sector might want to consider either Sandoz Group AG Sponsored ADR (SDZNY - Free Report) or Zoetis (ZTS - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Sandoz Group AG Sponsored ADR has a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SDZNY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
SDZNY currently has a forward P/E ratio of 19.01, while ZTS has a forward P/E of 23.76. We also note that SDZNY has a PEG ratio of 1.06. 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. ZTS currently has a PEG ratio of 2.43.
Another notable valuation metric for SDZNY is its P/B ratio of 3.26. 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, ZTS has a P/B of 13.43.
These metrics, and several others, help SDZNY earn a Value grade of B, while ZTS has been given a Value grade of C.
SDZNY stands above ZTS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SDZNY is the superior value option right now.