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GMAB or INCY: 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 Genmab A/S Sponsored ADR (GMAB - Free Report) or Incyte (INCY - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Genmab A/S Sponsored ADR has a Zacks Rank of #2 (Buy), while Incyte has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GMAB likely has seen a stronger improvement to its earnings outlook than INCY has recently. But this is just one factor that value investors are interested in.
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 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.
GMAB currently has a forward P/E ratio of 18.40, while INCY has a forward P/E of 42.67. We also note that GMAB has a PEG ratio of 0.71. 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. INCY currently has a PEG ratio of 2.26.
Another notable valuation metric for GMAB is its P/B ratio of 3.47. 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, INCY has a P/B of 4.23.
Based on these metrics and many more, GMAB holds a Value grade of B, while INCY has a Value grade of C.
GMAB 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 GMAB is likely the superior value option right now.
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GMAB or INCY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either Genmab A/S Sponsored ADR (GMAB - Free Report) or Incyte (INCY - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Genmab A/S Sponsored ADR has a Zacks Rank of #2 (Buy), while Incyte has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GMAB likely has seen a stronger improvement to its earnings outlook than INCY has recently. But this is just one factor that value investors are interested in.
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 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.
GMAB currently has a forward P/E ratio of 18.40, while INCY has a forward P/E of 42.67. We also note that GMAB has a PEG ratio of 0.71. 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. INCY currently has a PEG ratio of 2.26.
Another notable valuation metric for GMAB is its P/B ratio of 3.47. 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, INCY has a P/B of 4.23.
Based on these metrics and many more, GMAB holds a Value grade of B, while INCY has a Value grade of C.
GMAB 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 GMAB is likely the superior value option right now.