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PBYI vs. GMAB: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Puma Biotech (PBYI - Free Report) and Genmab AS Sponsored ADR (GMAB - 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.
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.
Puma Biotech and Genmab AS Sponsored ADR are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PBYI currently has a forward P/E ratio of 15.95, while GMAB has a forward P/E of 43.07. We also note that PBYI has a PEG ratio of 0.56. 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. GMAB currently has a PEG ratio of 1.63.
Another notable valuation metric for PBYI is its P/B ratio of 6.23. 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, GMAB has a P/B of 8.17.
These metrics, and several others, help PBYI earn a Value grade of B, while GMAB has been given a Value grade of C.
Both PBYI and GMAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PBYI is the superior value option right now.
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PBYI vs. GMAB: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Puma Biotech (PBYI - Free Report) and Genmab AS Sponsored ADR (GMAB - 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.
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.
Puma Biotech and Genmab AS Sponsored ADR are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PBYI currently has a forward P/E ratio of 15.95, while GMAB has a forward P/E of 43.07. We also note that PBYI has a PEG ratio of 0.56. 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. GMAB currently has a PEG ratio of 1.63.
Another notable valuation metric for PBYI is its P/B ratio of 6.23. 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, GMAB has a P/B of 8.17.
These metrics, and several others, help PBYI earn a Value grade of B, while GMAB has been given a Value grade of C.
Both PBYI and GMAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PBYI is the superior value option right now.