Investors interested in stocks from the Medical - Drugs sector have probably already heard of United Therapeutics (UTHR) and Stevanato Group (STVN). 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.

United Therapeutics has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UTHR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

UTHR currently has a forward P/E ratio of 12.64, while STVN has a forward P/E of 41.14. We also note that UTHR has a PEG ratio of 0.93. 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 8.35.

Another notable valuation metric for UTHR is its P/B ratio of 2.65. 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, STVN has a P/B of 5.81.

These metrics, and several others, help UTHR earn a Value grade of A, while STVN has been given a Value grade of C.

UTHR has seen stronger estimate revision activity and sports more attractive valuation metrics than STVN, so it seems like value investors will conclude that UTHR is the superior option right now.

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United Therapeutics Corporation (UTHR) : Free Stock Analysis Report

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

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