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SNY vs. LLY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Sanofi (SNY - Free Report) or Eli Lilly (LLY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Sanofi and Eli Lilly are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
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.
SNY currently has a forward P/E ratio of 12.79, while LLY has a forward P/E of 21.33. We also note that SNY has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LLY currently has a PEG ratio of 1.78.
Another notable valuation metric for SNY is its P/B ratio of 1.68. 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, LLY has a P/B of 51.37.
These metrics, and several others, help SNY earn a Value grade of A, while LLY has been given a Value grade of C.
Both SNY and LLY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SNY is the superior value option right now.
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SNY vs. LLY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Sanofi (SNY - Free Report) or Eli Lilly (LLY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Sanofi and Eli Lilly are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
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.
SNY currently has a forward P/E ratio of 12.79, while LLY has a forward P/E of 21.33. We also note that SNY has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LLY currently has a PEG ratio of 1.78.
Another notable valuation metric for SNY is its P/B ratio of 1.68. 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, LLY has a P/B of 51.37.
These metrics, and several others, help SNY earn a Value grade of A, while LLY has been given a Value grade of C.
Both SNY and LLY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SNY is the superior value option right now.