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PBYI vs. TECH: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Puma Biotech (PBYI - Free Report) or Techne (TECH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Right now, Puma Biotech is sporting a Zacks Rank of #1 (Strong Buy), while Techne 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 PBYI is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.
PBYI currently has a forward P/E ratio of 4.98, while TECH has a forward P/E of 40.87. We also note that PBYI has a PEG ratio of 0.81. 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. TECH currently has a PEG ratio of 3.14.
Another notable valuation metric for PBYI is its P/B ratio of 5.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TECH has a P/B of 6.75.
These metrics, and several others, help PBYI earn a Value grade of A, while TECH has been given a Value grade of C.
PBYI sticks out from TECH in both our Zacks Rank and Style Scores models, so value investors will likely feel that PBYI is the better option right now.
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PBYI vs. TECH: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Puma Biotech (PBYI - Free Report) or Techne (TECH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Right now, Puma Biotech is sporting a Zacks Rank of #1 (Strong Buy), while Techne 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 PBYI is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.
PBYI currently has a forward P/E ratio of 4.98, while TECH has a forward P/E of 40.87. We also note that PBYI has a PEG ratio of 0.81. 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. TECH currently has a PEG ratio of 3.14.
Another notable valuation metric for PBYI is its P/B ratio of 5.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TECH has a P/B of 6.75.
These metrics, and several others, help PBYI earn a Value grade of A, while TECH has been given a Value grade of C.
PBYI sticks out from TECH in both our Zacks Rank and Style Scores models, so value investors will likely feel that PBYI is the better option right now.