Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Anika Therapeutics (ANIK - Free Report) and Repligen (RGEN - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Anika Therapeutics is sporting a Zacks Rank of #1 (Strong Buy), while Repligen 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 ANIK 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 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.

ANIK currently has a forward P/E ratio of 27.36, while RGEN has a forward P/E of 78.49. We also note that ANIK has a PEG ratio of 2.74. 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. RGEN currently has a PEG ratio of 4.49.

Another notable valuation metric for ANIK is its P/B ratio of 1.68. 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, RGEN has a P/B of 4.14.

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

ANIK has seen stronger estimate revision activity and sports more attractive valuation metrics than RGEN, so it seems like value investors will conclude that ANIK is the superior option right now.


See More Zacks Research for These Tickers


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


Repligen Corporation (RGEN) - free report >>

Anika Therapeutics Inc. (ANIK) - free report >>

Published in