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

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Investors interested in Medical - Drugs stocks are likely familiar with Sandoz Group AG Sponsored ADR (SDZNY - Free Report) and Stevanato Group (STVN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Sandoz Group AG Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SDZNY has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 22.38, while STVN has a forward P/E of 34.66. We also note that SDZNY has a PEG ratio of 1.20. 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 2.03.

Another notable valuation metric for SDZNY is its P/B ratio of 3.63. 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 3.7.

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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