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

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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Exelixis (EXEL - Free Report) or Repligen (RGEN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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, both Exelixis and Repligen are sporting a Zacks Rank of # 2 (Buy). 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. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

EXEL currently has a forward P/E ratio of 52.19, while RGEN has a forward P/E of 119.81. We also note that EXEL has a PEG ratio of 1.38. 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. RGEN currently has a PEG ratio of 5.45.

Another notable valuation metric for EXEL is its P/B ratio of 4.35. 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, RGEN has a P/B of 6.60.

These are just a few of the metrics contributing to EXEL's Value grade of B and RGEN's Value grade of C.

Both EXEL and RGEN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXEL is the superior value option right now.


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Exelixis, Inc. (EXEL) - free report >>

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