Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Halozyme Therapeutics (HALO) and Amgen (AMGN). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Halozyme Therapeutics has a Zacks Rank of #2 (Buy), while Amgen 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 HALO has an improving earnings outlook. But this is just one piece of the puzzle 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.

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.

HALO currently has a forward P/E ratio of 12.30, while AMGN has a forward P/E of 15.87. We also note that HALO has a PEG ratio of 0.42. 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. AMGN currently has a PEG ratio of 2.73.

Another notable valuation metric for HALO is its P/B ratio of 21.49. 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, AMGN has a P/B of 29.94.

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

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

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Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report

Amgen Inc. (AMGN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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