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GSK or TECH: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either GSK (GSK - Free Report) or Techne (TECH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 has a Zacks Rank of #2 (Buy), while Techne has a Zacks Rank of #4 (Sell) 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. 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 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.
GSK currently has a forward P/E ratio of 9.66, while TECH has a forward P/E of 38.91. We also note that GSK has a PEG ratio of 1.79. 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 2.99.
Another notable valuation metric for GSK is its P/B ratio of 5.33. 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 7.44.
These metrics, and several others, help GSK earn a Value grade of A, while TECH has been given a Value grade of D.
GSK stands above TECH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GSK is the superior value option right now.
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GSK or TECH: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either GSK (GSK - Free Report) or Techne (TECH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 has a Zacks Rank of #2 (Buy), while Techne has a Zacks Rank of #4 (Sell) 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. 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 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.
GSK currently has a forward P/E ratio of 9.66, while TECH has a forward P/E of 38.91. We also note that GSK has a PEG ratio of 1.79. 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 2.99.
Another notable valuation metric for GSK is its P/B ratio of 5.33. 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 7.44.
These metrics, and several others, help GSK earn a Value grade of A, while TECH has been given a Value grade of D.
GSK stands above TECH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GSK is the superior value option right now.