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SDZNY 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 Sandoz Group AG Sponsored ADR (SDZNY - Free Report) or Zoetis (ZTS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, Sandoz Group AG Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SDZNY likely has seen a stronger improvement to its earnings outlook than ZTS has recently. 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.
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.
SDZNY currently has a forward P/E ratio of 17.03, while ZTS has a forward P/E of 31.25. We also note that SDZNY has a PEG ratio of 0.76. 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. ZTS currently has a PEG ratio of 2.80.
Another notable valuation metric for SDZNY is its P/B ratio of 2.24. 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 16.75.
These are just a few of the metrics contributing to SDZNY's Value grade of A and ZTS's Value grade of D.
SDZNY sticks out from ZTS in both our Zacks Rank and Style Scores models, so value investors will likely feel that SDZNY is the better option right now.
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SDZNY or ZTS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Drugs sector might want to consider either Sandoz Group AG Sponsored ADR (SDZNY - Free Report) or Zoetis (ZTS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, Sandoz Group AG Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SDZNY likely has seen a stronger improvement to its earnings outlook than ZTS has recently. 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.
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.
SDZNY currently has a forward P/E ratio of 17.03, while ZTS has a forward P/E of 31.25. We also note that SDZNY has a PEG ratio of 0.76. 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. ZTS currently has a PEG ratio of 2.80.
Another notable valuation metric for SDZNY is its P/B ratio of 2.24. 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 16.75.
These are just a few of the metrics contributing to SDZNY's Value grade of A and ZTS's Value grade of D.
SDZNY sticks out from ZTS in both our Zacks Rank and Style Scores models, so value investors will likely feel that SDZNY is the better option right now.