We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CPRX or STVN: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Medical - Drugs sector have probably already heard of Catalyst Pharmaceutical (CPRX - Free Report) and Stevanato Group (STVN - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Catalyst Pharmaceutical and Stevanato Group are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that CPRX likely has seen a stronger improvement to its earnings outlook than STVN has recently. But this is only part of the picture for value investors.
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.
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 11.07, while STVN has a forward P/E of 36.82. We also note that CPRX has a PEG ratio of 3.21. 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. STVN currently has a PEG ratio of 8.37.
Another notable valuation metric for CPRX is its P/B ratio of 4.12. 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 4.42.
These metrics, and several others, help CPRX earn a Value grade of B, while STVN has been given 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CPRX or STVN: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Drugs sector have probably already heard of Catalyst Pharmaceutical (CPRX - Free Report) and Stevanato Group (STVN - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Catalyst Pharmaceutical and Stevanato Group are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that CPRX likely has seen a stronger improvement to its earnings outlook than STVN has recently. But this is only part of the picture for value investors.
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.
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 11.07, while STVN has a forward P/E of 36.82. We also note that CPRX has a PEG ratio of 3.21. 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. STVN currently has a PEG ratio of 8.37.
Another notable valuation metric for CPRX is its P/B ratio of 4.12. 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 4.42.
These metrics, and several others, help CPRX earn a Value grade of B, while STVN has been given 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.