Yahoo Finance USNA vs. ZTS: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Drugs sector have probably already heard of USANA Health Sciences (USNA) and Zoetis (ZTS). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
USANA Health Sciences has a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that USNA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
USNA currently has a forward P/E ratio of 17.61, while ZTS has a forward P/E of 29.84. We also note that USNA has a PEG ratio of 1.47. 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. ZTS currently has a PEG ratio of 2.67.
Another notable valuation metric for USNA is its P/B ratio of 1.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ZTS has a P/B of 15.52.
These are just a few of the metrics contributing to USNA's Value grade of A and ZTS's Value grade of D.
USNA has seen stronger estimate revision activity and sports more attractive valuation metrics than ZTS, 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
Zoetis Inc. (ZTS) : Free Stock Analysis Report
