Which stock offers the highest value?
Stocks in the Large Cap Pharmaceuticals Sector might appeal to investors who are searching for options. What stock is more appealing to value investors? To determine, we will need to examine each stock more closely.
There are many strategies to find value stocks. However, we believe that combining a strong Zacks Rank and a high grade in our Value category of Style Scores system will yield the highest returns. Our Style Scores identify companies that have specific characteristics. The Zacks Rank favors stocks that show strong earnings estimate revision trends.
Sanofi and Novo Nordisk have a Zacks Rank #2 (Buy) right now. Investors can feel confident knowing that these stocks have a improving earnings outlook. The Zacks rank favors companies with positive analyst estimates revisions. This is not the only positive aspect for value investors.
Value investors also care about a variety of proven valuation metrics that can help them determine if a company is undervalued at current share prices.
Our Value category grades stocks on a variety key metrics such as the P/E ratio and the P/S, earnings yield, cash flow per share and cash flow per shares. There are many other fundamentals value investors often use.
SNY has a forward ratio of 11.34 to NVO’s 31.89. SNY also has a PEG Ratio of 1.17. This popular metric is comparable to the P/E ratio. The difference is that the PEG rate also includes the company’s expected earnings growth rate. NVO currently boasts a PEG of 1.74.
SNY’s 1.64 P/B Ratio is another notable valuation metric. To determine a stock’s market value relative to its book value, investors use the P/B rate. It is the total assets minus all liabilities. NVO, however, has a P/B ratio of 29.73.
These are only a few metrics that contribute to SNY’s value grade of B and NVOs value grade of C.
While both SNY and NVO have impressive earnings outlooks, we believe that SNY is the better value stock.
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Sanofi (SNY) : Free Stock Analysis Report
Novo Nordisk AS (NVO) : Free Stock Analysis Report