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BIIB or TECH: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Biogen Inc. (BIIB - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Biogen Inc. and Techne are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.

BIIB currently has a forward P/E ratio of 11.34, while TECH has a forward P/E of 29.71. We also note that BIIB has a PEG ratio of 2.39. 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 3.37.

Another notable valuation metric for BIIB is its P/B ratio of 1.44. 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, TECH has a P/B of 4.56.

Based on these metrics and many more, BIIB holds a Value grade of B, while TECH has a Value grade of D.

Both BIIB and TECH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BIIB is the superior value option right now.

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