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CHRS or ILMN: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Coherus BioSciences (CHRS - Free Report) and Illumina (ILMN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 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, Coherus BioSciences is sporting a Zacks Rank of #2 (Buy), while Illumina has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CHRS is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

CHRS currently has a forward P/E ratio of 10.26, while ILMN has a forward P/E of 74.14. We also note that CHRS has a PEG ratio of 4.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ILMN currently has a PEG ratio of 10.59.

Another notable valuation metric for CHRS is its P/B ratio of 5.85. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ILMN has a P/B of 10.42.

These are just a few of the metrics contributing to CHRS's Value grade of B and ILMN's Value grade of D.

CHRS stands above ILMN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHRS is the superior value option right now.


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