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ASRT vs. IPSEY: Which Stock Is the Better Value Option?

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Investors interested in Medical - Drugs stocks are likely familiar with Assertio (ASRT - Free Report) and IPSEN SA ADR (IPSEY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Assertio and IPSEN SA ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ASRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ASRT currently has a forward P/E ratio of 6.94, while IPSEY has a forward P/E of 20.93. We also note that ASRT has a PEG ratio of 0.35. 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. IPSEY currently has a PEG ratio of 1.05.

Another notable valuation metric for ASRT is its P/B ratio of 1.91. 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, IPSEY has a P/B of 6.94.

These are just a few of the metrics contributing to ASRT's Value grade of A and IPSEY's Value grade of C.

ASRT stands above IPSEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASRT is the superior value option right now.


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