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HRMY vs. REGN: Which Stock Is the Better Value Option?

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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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Harmony Biosciences Holdings, Inc. has a Zacks Rank of #2 (Buy), while Regeneron has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HRMY has an improving earnings outlook. But this is just one piece of the puzzle 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

HRMY currently has a forward P/E ratio of 17.14, while REGN has a forward P/E of 24.82. We also note that HRMY has a PEG ratio of 0.75. 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. REGN currently has a PEG ratio of 2.48.

Another notable valuation metric for HRMY is its P/B ratio of 3.58. 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, REGN has a P/B of 4.35.

These are just a few of the metrics contributing to HRMY's Value grade of A and REGN's Value grade of C.

HRMY sticks out from REGN in both our Zacks Rank and Style Scores models, so value investors will likely feel that HRMY is the better option right now.


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Regeneron Pharmaceuticals, Inc. (REGN) - free report >>

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