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REGN vs. TECH: Which Stock Is the Better Value Option?

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Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Regeneron (REGN - Free Report) and Techne (TECH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Regeneron is sporting a Zacks Rank of #1 (Strong Buy), while Techne has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that REGN has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

REGN currently has a forward P/E ratio of 9.66, while TECH has a forward P/E of 63.31. We also note that REGN has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TECH currently has a PEG ratio of 3.01.

Another notable valuation metric for REGN is its P/B ratio of 3.79. 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, TECH has a P/B of 11.80.

These metrics, and several others, help REGN earn a Value grade of B, while TECH has been given a Value grade of D.

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


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Regeneron Pharmaceuticals, Inc. (REGN) - free report >>

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