Investors looking for stocks in the Medical - Biomedical and Genetics sector might want to consider either BioMarin Pharmaceutical (BMRN) or Techne (TECH). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

BioMarin Pharmaceutical and Techne are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. 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 are also interested in a number of tried-and-true valuation metrics that help show when 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 16.26, while TECH has a forward P/E of 38.68. We also note that BMRN has a PEG ratio of 0.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TECH currently has a PEG ratio of 4.80.

Another notable valuation metric for BMRN is its P/B ratio of 2.31. 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, TECH has a P/B of 5.34.

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

BMRN sticks out from TECH in both our Zacks Rank and Style Scores models, so value investors will likely feel that BMRN is the better option right now.

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

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