Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Anika Therapeutics (ANIK - Free Report) or NeoGenomics (NEO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Anika Therapeutics has a Zacks Rank of #2 (Buy), while NeoGenomics has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ANIK likely has seen a stronger improvement to its earnings outlook than NEO has recently. But this is just one factor that value investors are interested in.
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.
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.
ANIK currently has a forward P/E ratio of 42.39, while NEO has a forward P/E of 813.64. We also note that ANIK has a PEG ratio of 4.24. 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. NEO currently has a PEG ratio of 72.65.
Another notable valuation metric for ANIK is its P/B ratio of 1.84. 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, NEO has a P/B of 6.04.
These are just a few of the metrics contributing to ANIK's Value grade of B and NEO's Value grade of D.
ANIK stands above NEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ANIK is the superior value option right now.