OSMT vs. QGEN: Which Stock Should Value Investors Buy Now?

QGEN

Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both OSMOTICA PHARM and Qiagen (QGEN - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, OSMOTICA PHARM is sporting a Zacks Rank of #2 (Buy), while Qiagen has a Zacks Rank of #3 (Hold). This means that OSMT'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 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 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.

OSMT currently has a forward P/E ratio of 10.28, while QGEN has a forward P/E of 29.87. We also note that OSMT has a PEG ratio of 1.03. 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. QGEN currently has a PEG ratio of 3.12.

Another notable valuation metric for OSMT is its P/B ratio of 2.39. 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, QGEN has a P/B of 3.82.

These metrics, and several others, help OSMT earn a Value grade of A, while QGEN has been given a Value grade of C.

OSMT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OSMT is likely the superior value option right now.

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