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ALKS vs. RGEN: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Alkermes (ALKS - Free Report) or Repligen (RGEN - 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Alkermes is sporting a Zacks Rank of #2 (Buy), while Repligen has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ALKS has an improving earnings outlook. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ALKS currently has a forward P/E ratio of 16.78, while RGEN has a forward P/E of 91.29. We also note that ALKS has a PEG ratio of 1.37. 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. RGEN currently has a PEG ratio of 3.42.

Another notable valuation metric for ALKS is its P/B ratio of 3.15. 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, RGEN has a P/B of 4.21.

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

ALKS sticks out from RGEN in both our Zacks Rank and Style Scores models, so value investors will likely feel that ALKS is the better option right now.


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Alkermes plc (ALKS) - free report >>

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