BMRN vs. CSLLY: Which Stock Should Value Investors Buy Now?

Zacks
01-28

Investors interested in Medical - Biomedical and Genetics stocks are likely familiar with BioMarin Pharmaceutical (BMRN) and CSL Limited Sponsored ADR (CSLLY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, BioMarin Pharmaceutical has a Zacks Rank of #1 (Strong Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BMRN has an improving earnings 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.

BMRN currently has a forward P/E ratio of 15.37, while CSLLY has a forward P/E of 23.54. We also note that BMRN has a PEG ratio of 0.42. 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. CSLLY currently has a PEG ratio of 1.69.

Another notable valuation metric for BMRN is its P/B ratio of 2.17. 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 4.27.

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

BMRN stands above CSLLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BMRN is the superior value option right now.

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BioMarin Pharmaceutical Inc. (BMRN) : Free Stock Analysis Report

CSL Limited Sponsored ADR (CSLLY) : Free Stock Analysis Report

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