Investors interested in Medical - Drugs stocks are likely familiar with Jazz Pharmaceuticals (JAZZ) and Catalent (CTLT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Jazz Pharmaceuticals has a Zacks Rank of #2 (Buy), while Catalent has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JAZZ is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JAZZ currently has a forward P/E ratio of 6.37, while CTLT has a forward P/E of 51.52. We also note that JAZZ has a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CTLT currently has a PEG ratio of 1.71.

Another notable valuation metric for JAZZ is its P/B ratio of 1.89. 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, CTLT has a P/B of 3.04.

These metrics, and several others, help JAZZ earn a Value grade of A, while CTLT has been given a Value grade of D.

JAZZ stands above CTLT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JAZZ is the superior value option right now.

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Jazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis Report

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