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CORT or ZTS: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Drugs stocks have likely encountered both Corcept Therapeutics (CORT) and Zoetis (ZTS). 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.

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 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.

Right now, Corcept Therapeutics is sporting a Zacks Rank of #2 (Buy), while Zoetis has a Zacks Rank of #3 (Hold). This means that CORT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

CORT currently has a forward P/E ratio of 25.33, while ZTS has a forward P/E of 44.67. We also note that CORT has a PEG ratio of 2.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZTS currently has a PEG ratio of 3.47.

Another notable valuation metric for CORT is its P/B ratio of 4.60. 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, ZTS has a P/B of 23.31.

These are just a few of the metrics contributing to CORT's Value grade of B and ZTS's Value grade of C.

CORT sticks out from ZTS in both our Zacks Rank and Style Scores models, so value investors will likely feel that CORT is the better option right now.


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Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report
 
Zoetis Inc. (ZTS) : Free Stock Analysis Report
 
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