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HALO vs. FOLD: Which Stock Is the Better Value Option?
Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Halozyme Therapeutics (HALO - Free Report) and Amicus Therapeutics (FOLD - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Halozyme Therapeutics has a Zacks Rank of #2 (Buy), while Amicus Therapeutics has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HALO likely has seen a stronger improvement to its earnings outlook than FOLD has recently. But this is just one factor that value investors are interested in.
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.
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.
HALO currently has a forward P/E ratio of 11.99, while FOLD has a forward P/E of 41.08. We also note that HALO has a PEG ratio of 0.41. 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. FOLD currently has a PEG ratio of 0.91.
Another notable valuation metric for HALO is its P/B ratio of 13.66. 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, FOLD has a P/B of 16.48.
These are just a few of the metrics contributing to HALO's Value grade of A and FOLD's Value grade of D.
HALO sticks out from FOLD in both our Zacks Rank and Style Scores models, so value investors will likely feel that HALO is the better option right now.