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AMRX vs. COLL: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Medical - Drugs stocks have likely encountered both Amneal Pharmaceuticals (AMRX - Free Report) and Collegium Pharmaceutical (COLL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Amneal Pharmaceuticals and Collegium Pharmaceutical are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMRX is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
AMRX currently has a forward P/E ratio of 8.71, while COLL has a forward P/E of 11.31. We also note that AMRX has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COLL currently has a PEG ratio of 0.57.
Another notable valuation metric for AMRX is its P/B ratio of 3.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, COLL has a P/B of 4.39.
Based on these metrics and many more, AMRX holds a Value grade of A, while COLL has a Value grade of C.
AMRX sticks out from COLL in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMRX is the better option right now.
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AMRX vs. COLL: Which Stock Should Value Investors Buy Now?
Investors with an interest in Medical - Drugs stocks have likely encountered both Amneal Pharmaceuticals (AMRX - Free Report) and Collegium Pharmaceutical (COLL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Amneal Pharmaceuticals and Collegium Pharmaceutical are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMRX is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
AMRX currently has a forward P/E ratio of 8.71, while COLL has a forward P/E of 11.31. We also note that AMRX has a PEG ratio of 0.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COLL currently has a PEG ratio of 0.57.
Another notable valuation metric for AMRX is its P/B ratio of 3.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, COLL has a P/B of 4.39.
Based on these metrics and many more, AMRX holds a Value grade of A, while COLL has a Value grade of C.
AMRX sticks out from COLL in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMRX is the better option right now.