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INCY vs. GMAB: Which Stock Is the Better Value Option?
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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Incyte (INCY - Free Report) and Genmab AS Sponsored ADR (GMAB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Both Incyte and Genmab AS Sponsored ADR have a Zacks Rank of # 2 (Buy) right now. 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
INCY currently has a forward P/E ratio of 22.14, while GMAB has a forward P/E of 36.14. We also note that INCY has a PEG ratio of 0.88. 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. GMAB currently has a PEG ratio of 1.37.
Another notable valuation metric for INCY is its P/B ratio of 3.76. 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, GMAB has a P/B of 6.86.
These metrics, and several others, help INCY earn a Value grade of B, while GMAB has been given a Value grade of C.
Both INCY and GMAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that INCY is the superior value option right now.
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INCY vs. GMAB: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Incyte (INCY - Free Report) and Genmab AS Sponsored ADR (GMAB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Both Incyte and Genmab AS Sponsored ADR have a Zacks Rank of # 2 (Buy) right now. 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
INCY currently has a forward P/E ratio of 22.14, while GMAB has a forward P/E of 36.14. We also note that INCY has a PEG ratio of 0.88. 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. GMAB currently has a PEG ratio of 1.37.
Another notable valuation metric for INCY is its P/B ratio of 3.76. 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, GMAB has a P/B of 6.86.
These metrics, and several others, help INCY earn a Value grade of B, while GMAB has been given a Value grade of C.
Both INCY and GMAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that INCY is the superior value option right now.