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EXEL or REGN: Which Is the Better Value Stock Right Now?
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Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Exelixis (EXEL - 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.
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.
Exelixis has a Zacks Rank of #2 (Buy), while Regeneron has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EXEL is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
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.
EXEL currently has a forward P/E ratio of 13.66, while REGN has a forward P/E of 20.88. We also note that EXEL has a PEG ratio of 0.52. 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. REGN currently has a PEG ratio of 2.33.
Another notable valuation metric for EXEL is its P/B ratio of 2.70. 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, REGN has a P/B of 3.94.
These are just a few of the metrics contributing to EXEL's Value grade of B and REGN's Value grade of C.
EXEL has seen stronger estimate revision activity and sports more attractive valuation metrics than REGN, so it seems like value investors will conclude that EXEL is the superior option right now.
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EXEL or REGN: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Exelixis (EXEL - 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.
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.
Exelixis has a Zacks Rank of #2 (Buy), while Regeneron has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EXEL is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
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.
EXEL currently has a forward P/E ratio of 13.66, while REGN has a forward P/E of 20.88. We also note that EXEL has a PEG ratio of 0.52. 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. REGN currently has a PEG ratio of 2.33.
Another notable valuation metric for EXEL is its P/B ratio of 2.70. 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, REGN has a P/B of 3.94.
These are just a few of the metrics contributing to EXEL's Value grade of B and REGN's Value grade of C.
EXEL has seen stronger estimate revision activity and sports more attractive valuation metrics than REGN, so it seems like value investors will conclude that EXEL is the superior option right now.