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PBYI 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 Puma Biotech (PBYI - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Puma Biotech and Techne are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that PBYI likely has seen a stronger improvement to its earnings outlook than TECH has recently. But this is just one factor that value investors are interested in.

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 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.

PBYI currently has a forward P/E ratio of 5.68, while TECH has a forward P/E of 41.22. We also note that PBYI has a PEG ratio of 0.93. 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. TECH currently has a PEG ratio of 3.17.

Another notable valuation metric for PBYI is its P/B ratio of 6.05. 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 6.81.

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

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


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