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PFE or NVO: Which Is the Better Value Stock Right Now?
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Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both Pfizer (PFE - Free Report) and Novo Nordisk (NVO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Pfizer has a Zacks Rank of #2 (Buy), while Novo Nordisk has a Zacks Rank of #3 (Hold). This means that PFE'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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
PFE currently has a forward P/E ratio of 11.33, while NVO has a forward P/E of 41.78. We also note that PFE has a PEG ratio of 1.06. 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. NVO currently has a PEG ratio of 1.42.
Another notable valuation metric for PFE is its P/B ratio of 1.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NVO has a P/B of 35.87.
These are just a few of the metrics contributing to PFE's Value grade of B and NVO's Value grade of C.
PFE stands above NVO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PFE is the superior value option right now.
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PFE or NVO: Which Is the Better Value Stock Right Now?
Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both Pfizer (PFE - Free Report) and Novo Nordisk (NVO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Pfizer has a Zacks Rank of #2 (Buy), while Novo Nordisk has a Zacks Rank of #3 (Hold). This means that PFE'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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
PFE currently has a forward P/E ratio of 11.33, while NVO has a forward P/E of 41.78. We also note that PFE has a PEG ratio of 1.06. 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. NVO currently has a PEG ratio of 1.42.
Another notable valuation metric for PFE is its P/B ratio of 1.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NVO has a P/B of 35.87.
These are just a few of the metrics contributing to PFE's Value grade of B and NVO's Value grade of C.
PFE stands above NVO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PFE is the superior value option right now.