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EXEL vs. TECH: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Exelixis (EXEL - Free Report) and Techne (TECH - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Exelixis is sporting a Zacks Rank of #2 (Buy), while Techne has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EXEL likely has seen a stronger improvement to its earnings outlook than TECH has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
EXEL currently has a forward P/E ratio of 13.52, while TECH has a forward P/E of 33.31. We also note that EXEL has a PEG ratio of 0.37. 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. TECH currently has a PEG ratio of 1.96.
Another notable valuation metric for EXEL is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TECH has a P/B of 6.56.
These metrics, and several others, help EXEL earn a Value grade of A, while TECH has been given a Value grade of C.
EXEL stands above TECH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EXEL is the superior value option right now.
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EXEL vs. TECH: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Exelixis (EXEL - Free Report) and Techne (TECH - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Exelixis is sporting a Zacks Rank of #2 (Buy), while Techne has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EXEL likely has seen a stronger improvement to its earnings outlook than TECH has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
EXEL currently has a forward P/E ratio of 13.52, while TECH has a forward P/E of 33.31. We also note that EXEL has a PEG ratio of 0.37. 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. TECH currently has a PEG ratio of 1.96.
Another notable valuation metric for EXEL is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TECH has a P/B of 6.56.
These metrics, and several others, help EXEL earn a Value grade of A, while TECH has been given a Value grade of C.
EXEL stands above TECH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EXEL is the superior value option right now.