Investors interested in stocks from the Medical - Drugs sector have probably already heard of Catalyst Pharmaceutical (CPRX) and Stevanato Group (STVN). 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.

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Catalyst Pharmaceuticals, Inc. (CPRX) : Free Stock Analysis Report

Stevanato Group S.p.A. (STVN) : Free Stock Analysis Report

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