Back to top

Image: Bigstock

PBYI or TECH: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Puma Biotech (PBYI - Free Report) or Techne (TECH - Free Report) . 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Puma Biotech and Techne are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PBYI has an improving earnings 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.

PBYI currently has a forward P/E ratio of 5.47, while TECH has a forward P/E of 41.75. We also note that PBYI has a PEG ratio of 0.89. 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. TECH currently has a PEG ratio of 5.76.

Another notable valuation metric for PBYI is its P/B ratio of 4.84. 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, TECH has a P/B of 6.16.

These are just a few of the metrics contributing to PBYI's Value grade of A and TECH's Value grade of D.

PBYI sticks out from TECH in both our Zacks Rank and Style Scores models, so value investors will likely feel that PBYI is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bio-Techne Corp (TECH) - free report >>

Puma Biotechnology, Inc. (PBYI) - free report >>

Published in