EXEL or RGEN: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Exelixis (EXEL) and Repligen (RGEN). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Repligen has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EXEL is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
EXEL currently has a forward P/E ratio of 22.42, while RGEN has a forward P/E of 75.94. We also note that EXEL has a PEG ratio of 0.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RGEN currently has a PEG ratio of 3.16.
Another notable valuation metric for EXEL is its P/B ratio of 2.53. 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, RGEN has a P/B of 5.06.
Based on these metrics and many more, EXEL holds a Value grade of B, while RGEN has a Value grade of D.
EXEL stands above RGEN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EXEL is the superior value option right now.
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Exelixis, Inc. (EXEL) : Free Stock Analysis Report
Repligen Corporation (RGEN) : Free Stock Analysis Report
