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PBYI vs. RGEN: 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 Puma Biotech (PBYI - Free Report) and Repligen (RGEN - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Puma Biotech has a Zacks Rank of #2 (Buy), while Repligen has a Zacks Rank of #3 (Hold) right now. This means that PBYI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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 8.35, while RGEN has a forward P/E of 129.33. We also note that PBYI has a PEG ratio of 1.36. 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. RGEN currently has a PEG ratio of 6.16.

Another notable valuation metric for PBYI is its P/B ratio of 5.24. 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 5.54.

These metrics, and several others, help PBYI earn a Value grade of A, while RGEN has been given a Value grade of D.

PBYI sticks out from RGEN 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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Repligen Corporation (RGEN) - free report >>

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