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Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Harmony Biosciences Holdings, Inc. (HRMY) and BeiGene, Ltd. (ONC). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Harmony Biosciences Holdings, Inc. has a Zacks Rank of #1 (Strong Buy), while BeiGene, Ltd. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HRMY likely has seen a stronger improvement to its earnings outlook than ONC has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HRMY currently has a forward P/E ratio of 12.33, while ONC has a forward P/E of 410.78. We also note that HRMY has a PEG ratio of 0.52. 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. ONC currently has a PEG ratio of 9.21.
Another notable valuation metric for HRMY is its P/B ratio of 3.72. 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, ONC has a P/B of 6.54.
These are just a few of the metrics contributing to HRMY's Value grade of A and ONC's Value grade of D.
HRMY sticks out from ONC in both our Zacks Rank and Style Scores models, so value investors will likely feel that HRMY is the better option right now.
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Harmony Biosciences Holdings, Inc. (HRMY) : Free Stock Analysis Report
BeiGene, Ltd. (ONC) : Free Stock Analysis Report