HRMY vs. REGN: Which Stock Should Value Investors Buy Now?

REGN HRMY

Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Harmony Biosciences Holdings, Inc. (HRMY - Free Report) and Regeneron (REGN - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Harmony Biosciences Holdings, Inc. has a Zacks Rank of #2 (Buy), while Regeneron has a Zacks Rank of #3 (Hold) right now. This means that HRMY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

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.

HRMY currently has a forward P/E ratio of 9.61, while REGN has a forward P/E of 19.86. We also note that HRMY has a PEG ratio of 0.70. 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. REGN currently has a PEG ratio of 2.09.

Another notable valuation metric for HRMY is its P/B ratio of 3.07. 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, REGN has a P/B of 3.57.

These are just a few of the metrics contributing to HRMY's Value grade of A and REGN's Value grade of C.

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

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