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

Zacks
02-13

Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both BioMarin Pharmaceutical (BMRN) and CSL Limited Sponsored ADR (CSLLY). 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 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 #2 (Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BMRN is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

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.

BMRN currently has a forward P/E ratio of 15.85, while CSLLY has a forward P/E of 22.76. We also note that BMRN has a PEG ratio of 0.44. 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. CSLLY currently has a PEG ratio of 1.47.

Another notable valuation metric for BMRN is its P/B ratio of 2.24. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CSLLY has a P/B of 4.03.

These are just a few of the metrics contributing to BMRN's Value grade of B and CSLLY's Value grade of F.

BMRN 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 BMRN is likely 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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