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OSMT or QGEN: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either OSMOTICA PHARM or Qiagen (QGEN - 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 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.

Currently, OSMOTICA PHARM has a Zacks Rank of #2 (Buy), while Qiagen has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OSMT likely has seen a stronger improvement to its earnings outlook than QGEN 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.

OSMT currently has a forward P/E ratio of 7.81, while QGEN has a forward P/E of 29.34. We also note that OSMT has a PEG ratio of 0.78. 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. QGEN currently has a PEG ratio of 3.06.

Another notable valuation metric for OSMT is its P/B ratio of 1.82. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, QGEN has a P/B of 3.75.

Based on these metrics and many more, OSMT holds a Value grade of A, while QGEN has a Value grade of C.

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


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