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BIIB or RGEN: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Biogen Inc. (BIIB - Free Report) and Repligen (RGEN - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Biogen Inc. has a Zacks Rank of #2 (Buy), while Repligen has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIIB has an improving earnings outlook. 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 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.

BIIB currently has a forward P/E ratio of 18.07, while RGEN has a forward P/E of 54.15. We also note that BIIB has a PEG ratio of 1.81. 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 7.74.

Another notable valuation metric for BIIB is its P/B ratio of 3.46. 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, RGEN has a P/B of 5.20.

These are just a few of the metrics contributing to BIIB's Value grade of A and RGEN's Value grade of D.

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


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