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HZNP vs. RGEN: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Horizon Therapeutics or Repligen (RGEN - 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.

Currently, Horizon Therapeutics has a Zacks Rank of #2 (Buy), while Repligen has a Zacks Rank of #3 (Hold). This means that HZNP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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.

HZNP currently has a forward P/E ratio of 20.85, while RGEN has a forward P/E of 59.81. We also note that HZNP has a PEG ratio of 1.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RGEN currently has a PEG ratio of 8.54.

Another notable valuation metric for HZNP is its P/B ratio of 5.09. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RGEN has a P/B of 5.36.

These are just a few of the metrics contributing to HZNP's Value grade of B and RGEN's Value grade of D.

HZNP has seen stronger estimate revision activity and sports more attractive valuation metrics than RGEN, so it seems like value investors will conclude that HZNP is the superior option right now.


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