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ASRT vs. CTLT: Which Stock Is the Better Value Option?

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Investors interested in Medical - Drugs stocks are likely familiar with Assertio (ASRT) and Catalent (CTLT). But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Assertio and Catalent are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that ASRT likely has seen a stronger improvement to its earnings outlook than CTLT has recently. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ASRT currently has a forward P/E ratio of 8.98, while CTLT has a forward P/E of 25.89. We also note that ASRT has a PEG ratio of 0.90. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CTLT currently has a PEG ratio of 1.57.

Another notable valuation metric for ASRT is its P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CTLT has a P/B of 4.21.

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

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


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Assertio Holdings, Inc. (ASRT) : Free Stock Analysis Report
 
Catalent, Inc. (CTLT) : Free Stock Analysis Report
 
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Zacks Investment Research