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LNTH vs. CLPBY: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - Products stocks have likely encountered both Lantheus Holdings (LNTH - Free Report) and Coloplast A/S (CLPBY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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

Currently, Lantheus Holdings has a Zacks Rank of #2 (Buy), while Coloplast A/S 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 LNTH has an improving earnings outlook. 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 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.

LNTH currently has a forward P/E ratio of 21.19, while CLPBY has a forward P/E of 36.97. We also note that LNTH has a PEG ratio of 1.77. 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. CLPBY currently has a PEG ratio of 3.70.

Another notable valuation metric for LNTH is its P/B ratio of 13.26. 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, CLPBY has a P/B of 27.64.

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

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


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

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