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

Core Insights - The article emphasizes the importance of combining a strong Zacks Rank with a high Value grade to identify great value stocks [1] - It highlights traditional metrics that value investors use to find undervalued stocks [2] Company Comparisons - United Therapeutics (UTHR) has a forward P/E ratio of 13.21 and a PEG ratio of 1.43, indicating a favorable valuation compared to Catalent (CTLT), which has a forward P/E of 49.28 and a PEG ratio of 1.69 [3][4] - UTHR's P/B ratio is 2.73, while CTLT's P/B ratio is 2.90, further supporting UTHR's superior valuation metrics [6] - UTHR is rated with a Zacks Rank of 2 (Buy), while CTLT has a Zacks Rank of 5 (Strong Sell), indicating a better earnings outlook for UTHR [8] Valuation Metrics - The article discusses various key metrics used in the Value category, including P/E ratio, P/S ratio, earnings yield, and cash flow per share, which are essential for identifying undervalued companies [9]