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COLL or ZTS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Drugs sector might want to consider either Collegium Pharmaceutical (COLL - Free Report) or Zoetis (ZTS - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Collegium Pharmaceutical is sporting a Zacks Rank of #1 (Strong Buy), while Zoetis has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that COLL likely has seen a stronger improvement to its earnings outlook than ZTS has recently. 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.
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.
COLL currently has a forward P/E ratio of 3.49, while ZTS has a forward P/E of 36.57. We also note that COLL has a PEG ratio of 0.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZTS currently has a PEG ratio of 3.19.
Another notable valuation metric for COLL is its P/B ratio of 3.42. 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, ZTS has a P/B of 19.62.
These metrics, and several others, help COLL earn a Value grade of A, while ZTS has been given a Value grade of C.
COLL stands above ZTS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that COLL is the superior value option right now.
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COLL or ZTS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Drugs sector might want to consider either Collegium Pharmaceutical (COLL - Free Report) or Zoetis (ZTS - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Collegium Pharmaceutical is sporting a Zacks Rank of #1 (Strong Buy), while Zoetis has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that COLL likely has seen a stronger improvement to its earnings outlook than ZTS has recently. 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.
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.
COLL currently has a forward P/E ratio of 3.49, while ZTS has a forward P/E of 36.57. We also note that COLL has a PEG ratio of 0.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZTS currently has a PEG ratio of 3.19.
Another notable valuation metric for COLL is its P/B ratio of 3.42. 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, ZTS has a P/B of 19.62.
These metrics, and several others, help COLL earn a Value grade of A, while ZTS has been given a Value grade of C.
COLL stands above ZTS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that COLL is the superior value option right now.