Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Vertex Pharmaceuticals (VRTX - Free Report) or Prothena (PRTA - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Vertex Pharmaceuticals has a Zacks Rank of #2 (Buy), while Prothena has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VRTX likely has seen a stronger improvement to its earnings outlook than PRTA has recently. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VRTX currently has a forward P/E ratio of 17.84, while PRTA has a forward P/E of 235.27. We also note that VRTX has a PEG ratio of 1.50. 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. PRTA currently has a PEG ratio of 100.98.
Another notable valuation metric for VRTX is its P/B ratio of 5.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PRTA has a P/B of 8.83.
These are just a few of the metrics contributing to VRTX's Value grade of B and PRTA's Value grade of D.
VRTX stands above PRTA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VRTX is the superior value option right now.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Vertex Pharmaceuticals (VRTX - Free Report) or Prothena (PRTA - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Vertex Pharmaceuticals has a Zacks Rank of #2 (Buy), while Prothena has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VRTX likely has seen a stronger improvement to its earnings outlook than PRTA has recently. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VRTX currently has a forward P/E ratio of 17.84, while PRTA has a forward P/E of 235.27. We also note that VRTX has a PEG ratio of 1.50. 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. PRTA currently has a PEG ratio of 100.98.
Another notable valuation metric for VRTX is its P/B ratio of 5.77. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PRTA has a P/B of 8.83.
These are just a few of the metrics contributing to VRTX's Value grade of B and PRTA's Value grade of D.
VRTX stands above PRTA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VRTX is the superior value option right now.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Get the latest research report on VRTX - FREE
Get the latest research report on PRTA - FREE