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GMAB vs. ACAD: 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 Genmab A/S Sponsored ADR (GMAB - Free Report) and Acadia Pharmaceuticals (ACAD - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Genmab A/S Sponsored ADR and Acadia Pharmaceuticals are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GMAB is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GMAB currently has a forward P/E ratio of 13.76, while ACAD has a forward P/E of 48.72. We also note that GMAB has a PEG ratio of 6.58. 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. ACAD currently has a PEG ratio of 6.63.
Another notable valuation metric for GMAB is its P/B ratio of 2.62. 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, ACAD has a P/B of 5.21.
These metrics, and several others, help GMAB earn a Value grade of B, while ACAD has been given a Value grade of C.
GMAB stands above ACAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GMAB is the superior value option right now.
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GMAB vs. ACAD: Which Stock Is the Better Value Option?
Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Genmab A/S Sponsored ADR (GMAB - Free Report) and Acadia Pharmaceuticals (ACAD - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Genmab A/S Sponsored ADR and Acadia Pharmaceuticals are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GMAB is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GMAB currently has a forward P/E ratio of 13.76, while ACAD has a forward P/E of 48.72. We also note that GMAB has a PEG ratio of 6.58. 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. ACAD currently has a PEG ratio of 6.63.
Another notable valuation metric for GMAB is its P/B ratio of 2.62. 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, ACAD has a P/B of 5.21.
These metrics, and several others, help GMAB earn a Value grade of B, while ACAD has been given a Value grade of C.
GMAB stands above ACAD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GMAB is the superior value option right now.