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KMDA or ACAD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Kamada (KMDA - Free Report) and Acadia Pharmaceuticals (ACAD - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kamada and Acadia Pharmaceuticals are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KMDA has an improving earnings outlook. 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.
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.
KMDA currently has a forward P/E ratio of 23.88, while ACAD has a forward P/E of 42.40. We also note that KMDA has a PEG ratio of 0.96. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ACAD currently has a PEG ratio of 4.51.
Another notable valuation metric for KMDA is its P/B ratio of 1.8. 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, ACAD has a P/B of 4.58.
These are just a few of the metrics contributing to KMDA's Value grade of A and ACAD's Value grade of C.
KMDA sticks out from ACAD in both our Zacks Rank and Style Scores models, so value investors will likely feel that KMDA is the better option right now.
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KMDA or ACAD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Kamada (KMDA - Free Report) and Acadia Pharmaceuticals (ACAD - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kamada and Acadia Pharmaceuticals are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KMDA has an improving earnings outlook. 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.
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.
KMDA currently has a forward P/E ratio of 23.88, while ACAD has a forward P/E of 42.40. We also note that KMDA has a PEG ratio of 0.96. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ACAD currently has a PEG ratio of 4.51.
Another notable valuation metric for KMDA is its P/B ratio of 1.8. 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, ACAD has a P/B of 4.58.
These are just a few of the metrics contributing to KMDA's Value grade of A and ACAD's Value grade of C.
KMDA sticks out from ACAD in both our Zacks Rank and Style Scores models, so value investors will likely feel that KMDA is the better option right now.