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

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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Anika Therapeutics (ANIK - Free Report) 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Anika Therapeutics has a Zacks Rank of #1 (Strong Buy), while Regenxbio has a Zacks Rank of #3 (Hold) right now. This means that ANIK'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 are also interested in a number of tried-and-true valuation metrics that help show when 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.

ANIK currently has a forward P/E ratio of 35.20, while RGNX has a forward P/E of 37.15. We also note that ANIK has a PEG ratio of 3.52. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RGNX currently has a PEG ratio of 12.22.

Another notable valuation metric for ANIK is its P/B ratio of 2.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RGNX has a P/B of 6.13.

These metrics, and several others, help ANIK earn a Value grade of B, while RGNX has been given a Value grade of F.

ANIK stands above RGNX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ANIK is the superior value option right now.


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