Investors with an interest in Medical - Biomedical and Genetics stocks have likely encountered both Exelixis (EXEL) and CSL Limited Sponsored ADR (CSLLY). But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Exelixis is sporting a Zacks Rank of #2 (Buy), while CSL Limited Sponsored ADR has a Zacks Rank of #4 (Sell). This means that EXEL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

EXEL currently has a forward P/E ratio of 17.88, while CSLLY has a forward P/E of 27.91. We also note that EXEL has a PEG ratio of 0.76. 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. CSLLY currently has a PEG ratio of 1.90.

Another notable valuation metric for EXEL is its P/B ratio of 4.30. 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 4.67.

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

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

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Exelixis, Inc. (EXEL) : Free Stock Analysis Report

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