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GMAB or TECH: Which Is the Better Value Stock Right Now?
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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 Techne (TECH - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Genmab A/S Sponsored ADR has a Zacks Rank of #2 (Buy), while Techne has a Zacks Rank of #3 (Hold). This means that GMAB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
GMAB currently has a forward P/E ratio of 18.74, while TECH has a forward P/E of 29.83. We also note that GMAB has a PEG ratio of 1.84. 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. TECH currently has a PEG ratio of 3.35.
Another notable valuation metric for GMAB is its P/B ratio of 3.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TECH has a P/B of 4.87.
These are just a few of the metrics contributing to GMAB's Value grade of B and TECH's Value grade of D.
GMAB 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 GMAB is likely the superior value option right now.
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GMAB or TECH: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Genmab A/S Sponsored ADR (GMAB - Free Report) and Techne (TECH - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Genmab A/S Sponsored ADR has a Zacks Rank of #2 (Buy), while Techne has a Zacks Rank of #3 (Hold). This means that GMAB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
GMAB currently has a forward P/E ratio of 18.74, while TECH has a forward P/E of 29.83. We also note that GMAB has a PEG ratio of 1.84. 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. TECH currently has a PEG ratio of 3.35.
Another notable valuation metric for GMAB is its P/B ratio of 3.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TECH has a P/B of 4.87.
These are just a few of the metrics contributing to GMAB's Value grade of B and TECH's Value grade of D.
GMAB 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 GMAB is likely the superior value option right now.