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GSK or TECH: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of GSK (GSK - Free Report) and 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
GSK and Techne are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GSK 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GSK currently has a forward P/E ratio of 10.51, while TECH has a forward P/E of 40.35. We also note that GSK has a PEG ratio of 1.94. 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 6.35.
Another notable valuation metric for GSK is its P/B ratio of 5.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TECH has a P/B of 5.76.
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 interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of GSK (GSK - Free Report) and 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
GSK and Techne are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GSK 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GSK currently has a forward P/E ratio of 10.51, while TECH has a forward P/E of 40.35. We also note that GSK has a PEG ratio of 1.94. 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 6.35.
Another notable valuation metric for GSK is its P/B ratio of 5.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TECH has a P/B of 5.76.
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.