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QGEN vs. ACAD: Which Stock Is the Better Value Option?

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Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Qiagen (QGEN - Free Report) and Acadia Pharmaceuticals (ACAD - 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.

Right now, Qiagen is sporting a Zacks Rank of #2 (Buy), while Acadia Pharmaceuticals has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that QGEN likely has seen a stronger improvement to its earnings outlook than ACAD has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

QGEN currently has a forward P/E ratio of 20.42, while ACAD has a forward P/E of 40.72. We also note that QGEN has a PEG ratio of 2.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACAD currently has a PEG ratio of 7.49.

Another notable valuation metric for QGEN is its P/B ratio of 3.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ACAD has a P/B of 4.37.

These metrics, and several others, help QGEN earn a Value grade of B, while ACAD has been given a Value grade of C.

QGEN 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 QGEN is likely the superior value option right now.


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QIAGEN N.V. (QGEN) - free report >>

ACADIA Pharmaceuticals Inc. (ACAD) - free report >>

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