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CPRX or STVN: Which Is the Better Value Stock Right Now?
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Investors interested in Medical - Drugs stocks are likely familiar with Catalyst Pharmaceutical (CPRX - Free Report) and Stevanato Group (STVN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Catalyst Pharmaceutical has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #4 (Sell). This means that CPRX'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.
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.
CPRX currently has a forward P/E ratio of 10.36, while STVN has a forward P/E of 39.52. We also note that CPRX has a PEG ratio of 3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STVN currently has a PEG ratio of 8.98.
Another notable valuation metric for CPRX is its P/B ratio of 3.86. 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, STVN has a P/B of 4.74.
Based on these metrics and many more, CPRX holds a Value grade of B, while STVN has a Value grade of C.
CPRX has seen stronger estimate revision activity and sports more attractive valuation metrics than STVN, so it seems like value investors will conclude that CPRX is the superior option right now.
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CPRX or STVN: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Drugs stocks are likely familiar with Catalyst Pharmaceutical (CPRX - Free Report) and Stevanato Group (STVN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Catalyst Pharmaceutical has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #4 (Sell). This means that CPRX'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.
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.
CPRX currently has a forward P/E ratio of 10.36, while STVN has a forward P/E of 39.52. We also note that CPRX has a PEG ratio of 3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STVN currently has a PEG ratio of 8.98.
Another notable valuation metric for CPRX is its P/B ratio of 3.86. 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, STVN has a P/B of 4.74.
Based on these metrics and many more, CPRX holds a Value grade of B, while STVN has a Value grade of C.
CPRX has seen stronger estimate revision activity and sports more attractive valuation metrics than STVN, so it seems like value investors will conclude that CPRX is the superior option right now.