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ALXN vs. RGNX: Which Stock Should Value Investors Buy Now?

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Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Alexion Pharmaceuticals and Regenxbio (RGNX - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Alexion Pharmaceuticals and Regenxbio are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ALXN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ALXN currently has a forward P/E ratio of 17.76, while RGNX has a forward P/E of 37.74. We also note that ALXN has a PEG ratio of 1. 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. RGNX currently has a PEG ratio of 9.48.

Another notable valuation metric for ALXN is its P/B ratio of 3.05. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RGNX has a P/B of 7.58.

These are just a few of the metrics contributing to ALXN's Value grade of B and RGNX's Value grade of D.

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


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