Back to top

Image: Bigstock

HRMY vs. REGN: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Harmony Biosciences Holdings, Inc. (HRMY - Free Report) and Regeneron (REGN - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Harmony Biosciences Holdings, Inc. has a Zacks Rank of #2 (Buy), while Regeneron has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HRMY likely has seen a stronger improvement to its earnings outlook than REGN has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

HRMY currently has a forward P/E ratio of 10.84, while REGN has a forward P/E of 19.10. We also note that HRMY has a PEG ratio of 0.79. 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. REGN currently has a PEG ratio of 2.56.

Another notable valuation metric for HRMY is its P/B ratio of 3.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, REGN has a P/B of 3.51.

These metrics, and several others, help HRMY earn a Value grade of A, while REGN has been given a Value grade of C.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Regeneron Pharmaceuticals, Inc. (REGN) - free report >>

Harmony Biosciences Holdings, Inc. (HRMY) - free report >>

Published in