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GSK or TECH: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both GSK (GSK - Free Report) and Techne (TECH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
GSK and Techne are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GSK'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.
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.
GSK currently has a forward P/E ratio of 10.09, while TECH has a forward P/E of 38.58. We also note that GSK has a PEG ratio of 1.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TECH currently has a PEG ratio of 2.14.
Another notable valuation metric for GSK is its P/B ratio of 5.37. 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, TECH has a P/B of 6.68.
Based on these metrics and many more, GSK holds a Value grade of A, while TECH has a Value grade of C.
GSK has seen stronger estimate revision activity and sports more attractive valuation metrics than TECH, so it seems like value investors will conclude that GSK is the superior option right now.
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GSK or TECH: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both GSK (GSK - Free Report) and Techne (TECH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
GSK and Techne are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GSK'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.
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.
GSK currently has a forward P/E ratio of 10.09, while TECH has a forward P/E of 38.58. We also note that GSK has a PEG ratio of 1.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TECH currently has a PEG ratio of 2.14.
Another notable valuation metric for GSK is its P/B ratio of 5.37. 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, TECH has a P/B of 6.68.
Based on these metrics and many more, GSK holds a Value grade of A, while TECH has a Value grade of C.
GSK has seen stronger estimate revision activity and sports more attractive valuation metrics than TECH, so it seems like value investors will conclude that GSK is the superior option right now.