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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 presents investors with the better value opportunity right now? Let's 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 and Regeneron are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EXEL has 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.

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 15.98, while REGN has a forward P/E of 21.07. We also note that EXEL has a PEG ratio of 0.51. 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 2.35.

Another notable valuation metric for EXEL is its P/B ratio of 3.13. 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 3.97.

Based on these metrics and many more, EXEL holds a Value grade of B, while REGN has a 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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Regeneron Pharmaceuticals, Inc. (REGN) - free report >>

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