AMRX or CORT: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Drugs stocks are likely familiar with Amneal Pharmaceuticals (AMRX) and Corcept Therapeutics (CORT). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Amneal Pharmaceuticals has a Zacks Rank of #2 (Buy), while Corcept Therapeutics has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMRX is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
AMRX currently has a forward P/E ratio of 8.42, while CORT has a forward P/E of 33.77. We also note that AMRX has a PEG ratio of 0.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CORT currently has a PEG ratio of 5.
Another notable valuation metric for AMRX is its P/B ratio of 5.09. 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, CORT has a P/B of 7.25.
These are just a few of the metrics contributing to AMRX's Value grade of A and CORT's Value grade of C.
AMRX has seen stronger estimate revision activity and sports more attractive valuation metrics than CORT, so it seems like value investors will conclude that AMRX is the superior option right now.
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AMNEAL PHARMACEUTICALS, INC. (AMRX) : Free Stock Analysis Report
Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report
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