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PRGO or NEOG: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Products stocks have likely encountered both Perrigo (PRGO - Free Report) and Neogen (NEOG - 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.
Right now, both Perrigo and Neogen are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
PRGO currently has a forward P/E ratio of 6.69, while NEOG has a forward P/E of 39.24. We also note that PRGO has a PEG ratio of 1.67. 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. NEOG currently has a PEG ratio of 3.92.
Another notable valuation metric for PRGO is its P/B ratio of 0.8. 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, NEOG has a P/B of 1.21.
These metrics, and several others, help PRGO earn a Value grade of A, while NEOG has been given a Value grade of C.
Both PRGO and NEOG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PRGO is the superior value option right now.
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PRGO or NEOG: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Products stocks have likely encountered both Perrigo (PRGO - Free Report) and Neogen (NEOG - 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.
Right now, both Perrigo and Neogen are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
PRGO currently has a forward P/E ratio of 6.69, while NEOG has a forward P/E of 39.24. We also note that PRGO has a PEG ratio of 1.67. 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. NEOG currently has a PEG ratio of 3.92.
Another notable valuation metric for PRGO is its P/B ratio of 0.8. 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, NEOG has a P/B of 1.21.
These metrics, and several others, help PRGO earn a Value grade of A, while NEOG has been given a Value grade of C.
Both PRGO and NEOG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PRGO is the superior value option right now.