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BIIB vs. RGEN: 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 Biogen Inc. (BIIB - Free Report) and Repligen (RGEN - 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.

Biogen Inc. and Repligen are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that BIIB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

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.

BIIB currently has a forward P/E ratio of 16.60, while RGEN has a forward P/E of 54.96. We also note that BIIB has a PEG ratio of 1.66. 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. RGEN currently has a PEG ratio of 7.85.

Another notable valuation metric for BIIB is its P/B ratio of 3.18. 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, RGEN has a P/B of 5.28.

Based on these metrics and many more, BIIB holds a Value grade of B, while RGEN has a Value grade of C.

BIIB sticks out from RGEN in both our Zacks Rank and Style Scores models, so value investors will likely feel that BIIB is the better option right now.


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Biogen Inc. (BIIB) - free report >>

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