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EXEL or CSLLY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Exelixis (EXEL - Free Report) and 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Exelixis is sporting a Zacks Rank of #2 (Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that EXEL 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

EXEL currently has a forward P/E ratio of 15.05, while CSLLY has a forward P/E of 29.26. We also note that EXEL has a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CSLLY currently has a PEG ratio of 1.96.

Another notable valuation metric for EXEL is its P/B ratio of 3.62. 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 5.52.

Based on these metrics and many more, EXEL holds a Value grade of B, while CSLLY has a Value grade of D.

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


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Exelixis, Inc. (EXEL) - free report >>

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