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EXEL vs. CSLLY: Which Stock Is the Better Value Option?

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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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Exelixis is sporting a Zacks Rank of #2 (Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #4 (Sell). This means that EXEL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 14.36, while CSLLY has a forward P/E of 29.10. We also note that EXEL has a PEG ratio of 0.48. 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. CSLLY currently has a PEG ratio of 1.98.

Another notable valuation metric for EXEL is its P/B ratio of 3.54. 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 4.96.

These metrics, and several others, help EXEL earn a Value grade of B, while CSLLY has been given a Value grade of C.

EXEL has seen stronger estimate revision activity and sports more attractive valuation metrics than CSLLY, so it seems like value investors will conclude that EXEL is the superior option right now.


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