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SDZNY vs. STVN: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - Drugs stocks have likely encountered both Sandoz Group AG Sponsored ADR (SDZNY - Free Report) and 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.

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.

Currently, Sandoz Group AG Sponsored ADR has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SDZNY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SDZNY currently has a forward P/E ratio of 15.98, while STVN has a forward P/E of 40.30. We also note that SDZNY has a PEG ratio of 0.71. 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. STVN currently has a PEG ratio of 5.78.

Another notable valuation metric for SDZNY is its P/B ratio of 2.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, STVN has a P/B of 4.92.

Based on these metrics and many more, SDZNY holds a Value grade of A, while STVN has a Value grade of C.

SDZNY 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 SDZNY is likely the superior value option right now.


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

Sandoz Group AG Sponsored ADR (SDZNY) - free report >>

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