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REGN vs. TECH: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Regeneron (REGN - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Regeneron and Techne are sporting a Zacks Rank of # 2 (Buy). 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 just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
REGN currently has a forward P/E ratio of 21.80, while TECH has a forward P/E of 61.48. We also note that REGN has a PEG ratio of 1.61. 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 10.25.
Another notable valuation metric for REGN is its P/B ratio of 5.66. 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 7.84.
Based on these metrics and many more, REGN holds a Value grade of B, while TECH has a Value grade of C.
Both REGN and TECH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that REGN is the superior value option right now.
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REGN vs. TECH: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Regeneron (REGN - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Regeneron and Techne are sporting a Zacks Rank of # 2 (Buy). 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 just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
REGN currently has a forward P/E ratio of 21.80, while TECH has a forward P/E of 61.48. We also note that REGN has a PEG ratio of 1.61. 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 10.25.
Another notable valuation metric for REGN is its P/B ratio of 5.66. 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 7.84.
Based on these metrics and many more, REGN holds a Value grade of B, while TECH has a Value grade of C.
Both REGN and TECH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that REGN is the superior value option right now.