Back to top

Image: Bigstock

EXEL vs. CSLLY: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Exelixis (EXEL - 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.

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

Exelixis has a Zacks Rank of #2 (Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that EXEL likely has seen a stronger improvement to its earnings outlook than CSLLY has recently. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

EXEL currently has a forward P/E ratio of 14.43, while CSLLY has a forward P/E of 30.55. We also note that EXEL has a PEG ratio of 0.42. 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 2.08.

Another notable valuation metric for EXEL is its P/B ratio of 3.47. 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, CSLLY has a P/B of 5.66.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

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

Published in