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REGN or TECH: 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 Regeneron (REGN) and Techne (TECH). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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

Regeneron has a Zacks Rank of #2 (Buy), while Techne has a Zacks Rank of #3 (Hold) right now. This means that REGN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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 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.

REGN currently has a forward P/E ratio of 8.99, while TECH has a forward P/E of 62.22. We also note that REGN has a PEG ratio of 1.06. 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. TECH currently has a PEG ratio of 2.96.

Another notable valuation metric for REGN is its P/B ratio of 3.90. 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, TECH has a P/B of 12.09.

These metrics, and several others, help REGN earn a Value grade of A, while TECH has been given a Value grade of C.

REGN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that REGN is likely the superior value option right now.


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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
 
BioTechne Corp (TECH) : Free Stock Analysis Report
 
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