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HRMY or REGN: Which Is the Better Value Stock Right Now?

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Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with Harmony Biosciences Holdings, Inc. (HRMY - Free Report) and Regeneron (REGN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Harmony Biosciences Holdings, Inc. has a Zacks Rank of #2 (Buy), while Regeneron has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that HRMY likely has seen a stronger improvement to its earnings outlook than REGN has recently. 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.

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.

HRMY currently has a forward P/E ratio of 15.89, while REGN has a forward P/E of 24.36. We also note that HRMY has a PEG ratio of 0.70. 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. REGN currently has a PEG ratio of 1.87.

Another notable valuation metric for HRMY is its P/B ratio of 3.53. 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, REGN has a P/B of 4.34.

Based on these metrics and many more, HRMY holds a Value grade of A, while REGN has a Value grade of D.

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


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