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LNTH vs. CLPBY: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Products sector might want to consider either Lantheus Holdings (LNTH - Free Report) or Coloplast A/S (CLPBY - 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.

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.

Currently, Lantheus Holdings has a Zacks Rank of #2 (Buy), while Coloplast A/S has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that LNTH likely has seen a stronger improvement to its earnings outlook than CLPBY has recently. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

LNTH currently has a forward P/E ratio of 20.75, while CLPBY has a forward P/E of 35.12. We also note that LNTH has a PEG ratio of 1.73. 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. CLPBY currently has a PEG ratio of 3.51.

Another notable valuation metric for LNTH is its P/B ratio of 12.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CLPBY has a P/B of 26.26.

These metrics, and several others, help LNTH earn a Value grade of B, while CLPBY has been given a Value grade of D.

LNTH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LNTH is likely the superior value option right now.


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Lantheus Holdings, Inc. (LNTH) - free report >>

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