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RHHBY vs. ABBV: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Roche Holding AG (RHHBY - Free Report) and AbbVie (ABBV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Roche Holding AG has a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #4 (Sell). This means that RHHBY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
RHHBY currently has a forward P/E ratio of 13.87, while ABBV has a forward P/E of 14. We also note that RHHBY has a PEG ratio of 2.68. 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. ABBV currently has a PEG ratio of 3.50.
Another notable valuation metric for RHHBY is its P/B ratio of 8.19. 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, ABBV has a P/B of 15.88.
These metrics, and several others, help RHHBY earn a Value grade of B, while ABBV has been given a Value grade of C.
RHHBY has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBV, so it seems like value investors will conclude that RHHBY is the superior option right now.
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RHHBY vs. ABBV: Which Stock Is the Better Value Option?
Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Roche Holding AG (RHHBY - Free Report) and AbbVie (ABBV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Roche Holding AG has a Zacks Rank of #2 (Buy), while AbbVie has a Zacks Rank of #4 (Sell). This means that RHHBY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
RHHBY currently has a forward P/E ratio of 13.87, while ABBV has a forward P/E of 14. We also note that RHHBY has a PEG ratio of 2.68. 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. ABBV currently has a PEG ratio of 3.50.
Another notable valuation metric for RHHBY is its P/B ratio of 8.19. 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, ABBV has a P/B of 15.88.
These metrics, and several others, help RHHBY earn a Value grade of B, while ABBV has been given a Value grade of C.
RHHBY has seen stronger estimate revision activity and sports more attractive valuation metrics than ABBV, so it seems like value investors will conclude that RHHBY is the superior option right now.