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BMY or ARGX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Bristol Myers Squibb (BMY - Free Report) or argenex SE (ARGX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

Bristol Myers Squibb has a Zacks Rank of #2 (Buy), while argenex SE has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BMY has an improving earnings outlook. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

BMY currently has a forward P/E ratio of 8.85, while ARGX has a forward P/E of 31.56. We also note that BMY has a PEG ratio of 0.29. 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. ARGX currently has a PEG ratio of 0.95.

Another notable valuation metric for BMY is its P/B ratio of 5.6. 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, ARGX has a P/B of 6.83.

These are just a few of the metrics contributing to BMY's Value grade of A and ARGX's Value grade of C.

BMY 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 BMY is likely the superior value option right now.

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