Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Regeneron (REGN - Free Report) and BioMarin Pharmaceutical (BMRN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

Right now, Regeneron is sporting a Zacks Rank of #2 (Buy), while BioMarin Pharmaceutical has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that REGN is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

REGN currently has a forward P/E ratio of 15.63, while BMRN has a forward P/E of 89.49. We also note that REGN has a PEG ratio of 1.34. 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. BMRN currently has a PEG ratio of 1.69.

Another notable valuation metric for REGN is its P/B ratio of 3.89. 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, BMRN has a P/B of 4.70.

These metrics, and several others, help REGN earn a Value grade of B, while BMRN has been given a Value grade of D.

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


See More Zacks Research for These Tickers


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


Regeneron Pharmaceuticals, Inc. (REGN) - free report >>

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

Published in