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GMAB vs. CSLLY: 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 Genmab A/S Sponsored ADR (GMAB - Free Report) or CSL Limited Sponsored ADR (CSLLY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Genmab A/S Sponsored ADR has a Zacks Rank of #2 (Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that GMAB likely has seen a stronger improvement to its earnings outlook than CSLLY 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.

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.

GMAB currently has a forward P/E ratio of 24.67, while CSLLY has a forward P/E of 28.96. We also note that GMAB has a PEG ratio of 1. 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. CSLLY currently has a PEG ratio of 1.99.

Another notable valuation metric for GMAB is its P/B ratio of 3.90. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CSLLY has a P/B of 5.48.

These are just a few of the metrics contributing to GMAB's Value grade of B and CSLLY's Value grade of F.

GMAB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GMAB is likely the superior value option right now.


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CSL Limited Sponsored ADR (CSLLY) - free report >>

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