We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BAYRY vs. RHHBY: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Bayer Aktiengesellschaft (BAYRY - Free Report) or Roche Holding AG (RHHBY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Bayer Aktiengesellschaft has a Zacks Rank of #2 (Buy), while Roche Holding AG has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that BAYRY likely has seen a stronger improvement to its earnings outlook than RHHBY has recently. But this is just one piece of the puzzle for value investors.
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.
BAYRY currently has a forward P/E ratio of 9.65, while RHHBY has a forward P/E of 17.16. We also note that BAYRY has a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RHHBY currently has a PEG ratio of 3.35.
Another notable valuation metric for BAYRY is its P/B ratio of 1.41. 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, RHHBY has a P/B of 7.21.
Based on these metrics and many more, BAYRY holds a Value grade of A, while RHHBY has a Value grade of C.
BAYRY sticks out from RHHBY in both our Zacks Rank and Style Scores models, so value investors will likely feel that BAYRY is the better option right now.
View the Zacks #1 Rank List
Image: Bigstock
BAYRY vs. RHHBY: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Large Cap Pharmaceuticals sector might want to consider either Bayer Aktiengesellschaft (BAYRY - Free Report) or Roche Holding AG (RHHBY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Bayer Aktiengesellschaft has a Zacks Rank of #2 (Buy), while Roche Holding AG has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that BAYRY likely has seen a stronger improvement to its earnings outlook than RHHBY has recently. But this is just one piece of the puzzle for value investors.
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.
BAYRY currently has a forward P/E ratio of 9.65, while RHHBY has a forward P/E of 17.16. We also note that BAYRY has a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RHHBY currently has a PEG ratio of 3.35.
Another notable valuation metric for BAYRY is its P/B ratio of 1.41. 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, RHHBY has a P/B of 7.21.
Based on these metrics and many more, BAYRY holds a Value grade of A, while RHHBY has a Value grade of C.
BAYRY sticks out from RHHBY in both our Zacks Rank and Style Scores models, so value investors will likely feel that BAYRY is the better option right now.