Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Qiagen (QGEN) and Repligen (RGEN). 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Qiagen is sporting a Zacks Rank of #2 (Buy), while Repligen has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that QGEN likely has seen a stronger improvement to its earnings outlook than RGEN has recently. But this is just one piece of the puzzle 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 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.
QGEN currently has a forward P/E ratio of 18.61, while RGEN has a forward P/E of 81.50. We also note that QGEN has a PEG ratio of 2.40. 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. RGEN currently has a PEG ratio of 3.91.
Another notable valuation metric for QGEN is its P/B ratio of 2.63. 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, RGEN has a P/B of 3.88.
Based on these metrics and many more, QGEN holds a Value grade of B, while RGEN has a Value grade of D.
QGEN 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 QGEN is likely the superior value option right now.
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QIAGEN N.V. (QGEN) : Free Stock Analysis Report
Repligen Corporation (RGEN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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