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CBM vs. TECH: Which Stock Is the Better Value Option?
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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Cambrex and Techne (TECH - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Cambrex and Techne are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.
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.
CBM currently has a forward P/E ratio of 20.98, while TECH has a forward P/E of 43.21. We also note that CBM has a PEG ratio of 2.10. 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. TECH currently has a PEG ratio of 3.60.
Another notable valuation metric for CBM is its P/B ratio of 2.16. 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, TECH has a P/B of 6.51.
Based on these metrics and many more, CBM holds a Value grade of B, while TECH has a Value grade of D.
Both CBM and TECH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBM is the superior value option right now.
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CBM vs. TECH: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Cambrex and Techne (TECH - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Cambrex and Techne are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.
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.
CBM currently has a forward P/E ratio of 20.98, while TECH has a forward P/E of 43.21. We also note that CBM has a PEG ratio of 2.10. 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. TECH currently has a PEG ratio of 3.60.
Another notable valuation metric for CBM is its P/B ratio of 2.16. 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, TECH has a P/B of 6.51.
Based on these metrics and many more, CBM holds a Value grade of B, while TECH has a Value grade of D.
Both CBM and TECH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBM is the superior value option right now.