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

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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Exelixis (EXEL - Free Report) and Regeneron (REGN - 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.

Exelixis has a Zacks Rank of #2 (Buy), while Regeneron has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that EXEL likely has seen a stronger improvement to its earnings outlook than REGN has recently. However, value investors will care about much more than just this.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

EXEL currently has a forward P/E ratio of 16.23, while REGN has a forward P/E of 19.99. We also note that EXEL has a PEG ratio of 0.52. 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. REGN currently has a PEG ratio of 2.23.

Another notable valuation metric for EXEL is its P/B ratio of 3.18. 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, REGN has a P/B of 3.83.

Based on these metrics and many more, EXEL holds a Value grade of B, while REGN has a Value grade of C.

EXEL stands above REGN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EXEL is the superior value option right now.


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

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