We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ASRT vs. COLL: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in stocks from the Medical - Drugs sector have probably already heard of Assertio (ASRT - Free Report) and Collegium Pharmaceutical (COLL - 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 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 has a Zacks Rank of #2 (Buy), while Collegium Pharmaceutical has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ASRT likely has seen a stronger improvement to its earnings outlook than COLL has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ASRT currently has a forward P/E ratio of 5.81, while COLL has a forward P/E of 27.51. We also note that ASRT has a PEG ratio of 0.29. 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. COLL currently has a PEG ratio of 1.38.
Another notable valuation metric for ASRT is its P/B ratio of 1.11. 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, COLL has a P/B of 7.36.
These are just a few of the metrics contributing to ASRT's Value grade of A and COLL's Value grade of F.
ASRT has seen stronger estimate revision activity and sports more attractive valuation metrics than COLL, so it seems like value investors will conclude that ASRT is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ASRT vs. COLL: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Medical - Drugs sector have probably already heard of Assertio (ASRT - Free Report) and Collegium Pharmaceutical (COLL - 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 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 has a Zacks Rank of #2 (Buy), while Collegium Pharmaceutical has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ASRT likely has seen a stronger improvement to its earnings outlook than COLL has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ASRT currently has a forward P/E ratio of 5.81, while COLL has a forward P/E of 27.51. We also note that ASRT has a PEG ratio of 0.29. 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. COLL currently has a PEG ratio of 1.38.
Another notable valuation metric for ASRT is its P/B ratio of 1.11. 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, COLL has a P/B of 7.36.
These are just a few of the metrics contributing to ASRT's Value grade of A and COLL's Value grade of F.
ASRT has seen stronger estimate revision activity and sports more attractive valuation metrics than COLL, so it seems like value investors will conclude that ASRT is the superior option right now.