Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Genmab A/S Sponsored ADR (GMAB) and Repligen (RGEN). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Genmab A/S Sponsored ADR has a Zacks Rank of #2 (Buy), while Repligen has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GMAB likely has seen a stronger improvement to its earnings outlook than RGEN has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GMAB currently has a forward P/E ratio of 13.14, while RGEN has a forward P/E of 74.92. We also note that GMAB has a PEG ratio of 2.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RGEN currently has a PEG ratio of 3.60.
Another notable valuation metric for GMAB is its P/B ratio of 2.43. 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, RGEN has a P/B of 3.60.
These metrics, and several others, help GMAB earn a Value grade of A, while RGEN has been given a Value grade of D.
GMAB stands above RGEN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GMAB is the superior value option right now.
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Genmab A/S Sponsored ADR (GMAB): Free Stock Analysis Report Repligen Corporation (RGEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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