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BIIB vs. MYGN: 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 Biogen Inc. (BIIB - Free Report) and Myriad Genetics (MYGN - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Biogen Inc. is sporting a Zacks Rank of #2 (Buy), while Myriad Genetics has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIIB has an improving earnings outlook. 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 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.

BIIB currently has a forward P/E ratio of 10.81, while MYGN has a forward P/E of 185.37. We also note that BIIB has a PEG ratio of 1.68. 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. MYGN currently has a PEG ratio of 3.61.

Another notable valuation metric for BIIB is its P/B ratio of 1.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MYGN has a P/B of 2.15.

These are just a few of the metrics contributing to BIIB's Value grade of A and MYGN's Value grade of D.

BIIB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BIIB is likely the superior value option right now.


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