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KMDA vs. CSLLY: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Kamada (KMDA - Free Report) or CSL Limited Sponsored ADR (CSLLY - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Kamada has a Zacks Rank of #2 (Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that KMDA likely has seen a stronger improvement to its earnings outlook than CSLLY has recently. 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.

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.

KMDA currently has a forward P/E ratio of 22.98, while CSLLY has a forward P/E of 24.59. We also note that KMDA has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CSLLY currently has a PEG ratio of 1.96.

Another notable valuation metric for KMDA is its P/B ratio of 1.59. 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, CSLLY has a P/B of 4.02.

Based on these metrics and many more, KMDA holds a Value grade of A, while CSLLY has a Value grade of D.

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


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