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UTHR vs. CTLT: Which Stock Is the Better Value Option?
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Investors interested in Medical - Drugs stocks are likely familiar with United Therapeutics (UTHR - Free Report) and Catalent (CTLT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Right now, United Therapeutics is sporting a Zacks Rank of #2 (Buy), while Catalent has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UTHR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UTHR currently has a forward P/E ratio of 13.21, while CTLT has a forward P/E of 49.28. We also note that UTHR has a PEG ratio of 1.43. 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. CTLT currently has a PEG ratio of 1.69.
Another notable valuation metric for UTHR is its P/B ratio of 2.73. 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, CTLT has a P/B of 2.90.
Based on these metrics and many more, UTHR holds a Value grade of B, while CTLT has a Value grade of D.
UTHR stands above CTLT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UTHR is the superior value option right now.
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UTHR vs. CTLT: Which Stock Is the Better Value Option?
Investors interested in Medical - Drugs stocks are likely familiar with United Therapeutics (UTHR - Free Report) and Catalent (CTLT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Right now, United Therapeutics is sporting a Zacks Rank of #2 (Buy), while Catalent has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UTHR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UTHR currently has a forward P/E ratio of 13.21, while CTLT has a forward P/E of 49.28. We also note that UTHR has a PEG ratio of 1.43. 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. CTLT currently has a PEG ratio of 1.69.
Another notable valuation metric for UTHR is its P/B ratio of 2.73. 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, CTLT has a P/B of 2.90.
Based on these metrics and many more, UTHR holds a Value grade of B, while CTLT has a Value grade of D.
UTHR stands above CTLT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UTHR is the superior value option right now.