Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Qiagen (NYSE:QGEN) and Repligen (NASDAQ:RGEN). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Qiagen is sporting a Zacks Rank of #1 (Strong Buy), while Repligen has a Zacks Rank of #2 (Buy). This means that QGEN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
QGEN currently has a forward P/E ratio of 25.27, while RGEN has a forward P/E of 115.64. We also note that QGEN has a PEG ratio of 2.07. 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. RGEN currently has a PEG ratio of 5.26.
Another notable valuation metric for QGEN is its P/B ratio of 3.93. 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, RGEN has a P/B of 6.26.
These metrics, and several others, help QGEN earn a Value grade of B, while RGEN has been given a Value grade of C.
QGEN has seen stronger estimate revision activity and sports more attractive valuation metrics than RGEN, so it seems like value investors will conclude that QGEN is the superior option right now.
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QIAGEN N.V. (QGEN): Free Stock Analysis Report
Repligen Corporation (RGEN): Free Stock Analysis Report
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