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SDZNY vs. STVN: Which Stock Should Value Investors Buy Now?

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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 Stevanato Group (STVN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Sandoz Group AG Sponsored ADR and Stevanato Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SDZNY likely has seen a stronger improvement to its earnings outlook than STVN has recently. But this is just one factor that value investors are interested in.

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.

SDZNY currently has a forward P/E ratio of 21.93, while STVN has a forward P/E of 38.10. We also note that SDZNY has a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. STVN currently has a PEG ratio of 2.17.

Another notable valuation metric for SDZNY is its P/B ratio of 3.56. 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 3.98.

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

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

Sandoz Group AG Sponsored ADR (SDZNY) - free report >>

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