Investors looking for stocks in the Medical - Drugs sector might want to consider either USANA Health Sciences (USNA) or Stevanato Group (STVN). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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.

USANA Health Sciences and Stevanato Group are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that USNA is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

USNA currently has a forward P/E ratio of 11.11, while STVN has a forward P/E of 35.68. We also note that USNA has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STVN currently has a PEG ratio of 7.24.

Another notable valuation metric for USNA is its P/B ratio of 1.23. 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 5.04.

Based on these metrics and many more, USNA holds a Value grade of A, while STVN has a Value grade of D.

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

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USANA Health Sciences, Inc. (USNA) : Free Stock Analysis Report

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

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