Back to top

Image: Bigstock

BMRN or TARS: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with BioMarin Pharmaceutical (BMRN - Free Report) and Tarsus Pharmaceuticals, Inc. (TARS - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

BioMarin Pharmaceutical has a Zacks Rank of #2 (Buy), while Tarsus Pharmaceuticals, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BMRN likely has seen a stronger improvement to its earnings outlook than TARS has recently. However, value investors will care about much more than just this.

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.

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.

BMRN currently has a forward P/E ratio of 10.82, while TARS has a forward P/E of 71.71. We also note that BMRN has a PEG ratio of 0.54. 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. TARS currently has a PEG ratio of 1.26.

Another notable valuation metric for BMRN is its P/B ratio of 1.83. 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, TARS has a P/B of 9.57.

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

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BioMarin Pharmaceutical Inc. (BMRN) - free report >>

Tarsus Pharmaceuticals, Inc. (TARS) - free report >>

Published in