USNA or STVN: Which Is the Better Value Stock Right Now?

Zacks
15 Feb

Investors interested in Medical - Drugs stocks are likely familiar with USANA Health Sciences (USNA) 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, USANA Health Sciences has a Zacks Rank of #1 (Strong Buy), while Stevanato Group has a Zacks Rank of #4 (Sell). 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 only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 10.23, while STVN has a forward P/E of 32.99. We also note that USNA has a PEG ratio of 0.85. 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 6.69.

Another notable valuation metric for USNA is its P/B ratio of 1.13. 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 4.60.

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

USNA stands above STVN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that USNA is the superior value 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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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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