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ASRT vs. STVN: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Drugs sector might want to consider either Assertio (ASRT - Free Report) or Stevanato Group (STVN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Assertio has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASRT likely has seen a stronger improvement to its earnings outlook than STVN 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.

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 4.95, while STVN has a forward P/E of 34.27. We also note that ASRT has a PEG ratio of 0.49. 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. STVN currently has a PEG ratio of 2.15.

Another notable valuation metric for ASRT is its P/B ratio of 0.90. 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, STVN has a P/B of 5.41.

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

ASRT sticks out from STVN in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASRT is the better option right now.


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Assertio Holdings, Inc. (ASRT) - free report >>

Stevanato Group S.p.A. (STVN) - free report >>

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