Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Regeneron (REGN) and Repligen (RGEN). 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Regeneron has a Zacks Rank of #2 (Buy), while Repligen has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that REGN is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
REGN currently has a forward P/E ratio of 17.94, while RGEN has a forward P/E of 62.30. We also note that REGN has a PEG ratio of 2.24. 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. RGEN currently has a PEG ratio of 8.90.
Another notable valuation metric for REGN is its P/B ratio of 3.87. 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, RGEN has a P/B of 6.08.
Based on these metrics and many more, REGN holds a Value grade of B, while RGEN has a Value grade of D.
REGN sticks out from RGEN in both our Zacks Rank and Style Scores models, so value investors will likely feel that REGN is the better option right now.
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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Repligen Corporation (RGEN) : Free Stock Analysis Report
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