Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Keros Therapeutics, Inc. (KROS) or argenex SE (ARGX). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Keros Therapeutics, Inc. has a Zacks Rank of #1 (Strong Buy), while argenex SE has a Zacks Rank of #3 (Hold) right now. This means that KROS'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 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.
KROS currently has a forward P/E ratio of 10.55, while ARGX has a forward P/E of 50.00. We also note that KROS has a PEG ratio of 0.45. 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. ARGX currently has a PEG ratio of 0.89.
Another notable valuation metric for KROS is its P/B ratio of 0.7. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ARGX has a P/B of 8.58.
Based on these metrics and many more, KROS holds a Value grade of A, while ARGX has a Value grade of C.
KROS has seen stronger estimate revision activity and sports more attractive valuation metrics than ARGX, so it seems like value investors will conclude that KROS is the superior option right now.
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Keros Therapeutics, Inc. (KROS): Free Stock Analysis Report argenex SE (ARGX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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