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ASRT or UTHR: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Drugs stocks have likely encountered both Assertio (ASRT - Free Report) and United Therapeutics (UTHR - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Assertio has a Zacks Rank of #2 (Buy), while United Therapeutics has a Zacks Rank of #5 (Strong Sell) right now. This means that ASRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 4.13, while UTHR has a forward P/E of 14.66. We also note that ASRT has a PEG ratio of 0.41. 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. UTHR currently has a PEG ratio of 4.29.
Another notable valuation metric for ASRT is its P/B ratio of 0.75. 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, UTHR has a P/B of 2.28.
These metrics, and several others, help ASRT earn a Value grade of A, while UTHR has been given a Value grade of D.
ASRT 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 ASRT is likely the superior value option right now.
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ASRT or UTHR: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Drugs stocks have likely encountered both Assertio (ASRT - Free Report) and United Therapeutics (UTHR - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Assertio has a Zacks Rank of #2 (Buy), while United Therapeutics has a Zacks Rank of #5 (Strong Sell) right now. This means that ASRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 4.13, while UTHR has a forward P/E of 14.66. We also note that ASRT has a PEG ratio of 0.41. 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. UTHR currently has a PEG ratio of 4.29.
Another notable valuation metric for ASRT is its P/B ratio of 0.75. 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, UTHR has a P/B of 2.28.
These metrics, and several others, help ASRT earn a Value grade of A, while UTHR has been given a Value grade of D.
ASRT 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 ASRT is likely the superior value option right now.