Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Halozyme Therapeutics (HALO) and Axsome Therapeutics (AXSM). 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.
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.
Right now, Halozyme Therapeutics is sporting a Zacks Rank of #2 (Buy), while Axsome Therapeutics has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HALO has an improving earnings outlook. 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 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.
HALO currently has a forward P/E ratio of 9.51, while AXSM has a forward P/E of 398.07. We also note that HALO has a PEG ratio of 0.31. 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. AXSM currently has a PEG ratio of 8.83.
Another notable valuation metric for HALO is its P/B ratio of 16.83. 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, AXSM has a P/B of 114.57.
These are just a few of the metrics contributing to HALO's Value grade of B and AXSM's Value grade of D.
HALO sticks out from AXSM in both our Zacks Rank and Style Scores models, so value investors will likely feel that HALO is the better option right now.
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Halozyme Therapeutics, Inc. (HALO): Free Stock Analysis Report Axsome Therapeutics, Inc. (AXSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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