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

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

Currently, both Harmony Biosciences Holdings, Inc. and Repligen are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 9.07, while RGEN has a forward P/E of 99.63. We also note that HRMY has a PEG ratio of 0.48. 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. RGEN currently has a PEG ratio of 4.15.

Another notable valuation metric for HRMY is its P/B ratio of 3.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RGEN has a P/B of 5.

Based on these metrics and many more, HRMY holds a Value grade of A, while RGEN has a Value grade of D.

Both HRMY and RGEN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HRMY is the superior value option right now.


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