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HRMY or ACAD: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Harmony Biosciences Holdings, Inc. (HRMY - Free Report) or Acadia Pharmaceuticals (ACAD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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, both Harmony Biosciences Holdings, Inc. and Acadia Pharmaceuticals are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
HRMY currently has a forward P/E ratio of 9.03, while ACAD has a forward P/E of 28.57. We also note that HRMY has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACAD currently has a PEG ratio of 0.66.
Another notable valuation metric for HRMY is its P/B ratio of 3.80. 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, ACAD has a P/B of 13.40.
These metrics, and several others, help HRMY earn a Value grade of A, while ACAD has been given a Value grade of C.
Both HRMY and ACAD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HRMY is the superior value option right now.
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HRMY or ACAD: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Harmony Biosciences Holdings, Inc. (HRMY - Free Report) or Acadia Pharmaceuticals (ACAD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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, both Harmony Biosciences Holdings, Inc. and Acadia Pharmaceuticals are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
HRMY currently has a forward P/E ratio of 9.03, while ACAD has a forward P/E of 28.57. We also note that HRMY has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACAD currently has a PEG ratio of 0.66.
Another notable valuation metric for HRMY is its P/B ratio of 3.80. 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, ACAD has a P/B of 13.40.
These metrics, and several others, help HRMY earn a Value grade of A, while ACAD has been given a Value grade of C.
Both HRMY and ACAD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HRMY is the superior value option right now.