Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Biotechnology & Medical Research industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Biotechnology & Medical Research Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Biotechnology & Medical Research Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Biotechnology & Medical Research industry for Tuesday, March 19, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Biotechnology & Medical Research industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Bellerophon Therapeutics Inc’s Value Grade

Value Grade:

Bellerophon Therapeutics, Inc. is a clinical-stage therapeutics company. The Company is focused on developing products that address significant unmet medical needs in the treatment of cardiopulmonary diseases. The Company?s focus is to develop its nitric oxide therapy for patients with pulmonary hypertension (PH) using its delivery system, INOpulse. The Company?s INOpulse program is an extension of the technology used in hospitals to deliver continuous flow inhaled nitric oxide. INOpulse program is built on scientific and technical development for the therapeutic delivery of inhaled nitric oxide. It is also developing INOpulse for the treatment of patients with fibrotic interstitial lung disease (fILD), PH-Sarcoidosis, PH-chronic obstructive pulmonary disease (COPD), pulmonary arterial hypertension, and other pulmonary hypertension conditions. The Company?s subsidiaries include Bellerophon BCM LLC, Bellerophon Pulse Technologies LLC and Bellerophon Services, Inc.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Bellerophon Therapeutics Inc has a Value Score of 79, which is considered to be undervalued.

When you look at Bellerophon Therapeutics Inc’s price-to-sales ratio at 0.12 compared to the industry median at 8.66, this company has a lower price relative to revenue compared to its peers. This could make Bellerophon Therapeutics Inc’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Bellerophon Therapeutics Inc’s shareholder yield is lower than its industry median ratio of (9.59%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Bellerophon Therapeutics Inc’s price-to-book ratio is lower than its industry median ratio of 2.02. This could make Bellerophon Therapeutics Inc more attractive to investors looking for a new addition to their portfolio.

Precision BioSciences Inc’s Value Grade

Value Grade:

Precision BioSciences, Inc. is an advanced gene editing company dedicated to improving life (DTIL) with its proprietary ARCUS genome editing platform. Using ARCUS, the Company’s pipeline comprises in vivo gene editing candidates designed to deliver cures for a range of genetic and infectious diseases. ARCUS is a natural homing endonuclease which allows precise gene editing, such as gene insertions, gene excision, and gene elimination. ARCUS is also relatively small size which potentially allows delivery to a range of cells and tissues using viral and non-viral gene delivery methods. ARCUS uses sequence-specific deoxyribonucleic acid (DNA)-cutting enzymes, or nucleases to insert (knock in), remove (knock out), or repair DNA of living cells and tissues. The Company’s in vivo gene editing programs include PBGENE-HBV, PBGENE-HbE, PBGENE-DMD, PBGENE-LLY2, PBGENE-LLY3, iECURE-OTC, and PBGENE-PMM. PBGENE-HBV is designed for the treatment of chronic hepatitis B virus (HBV).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Precision BioSciences Inc has a Value Score of 67, which is considered to be undervalued.

Precision BioSciences Inc’s price-to-book ratio is higher than its peers. This could make Precision BioSciences Inc less attractive for value investors when compared to the industry median at 2.02.

You can read more about Precision BioSciences Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

InMed Pharmaceuticals Inc’s Value Grade

Value Grade:

InMed Pharmaceuticals Inc. is a clinical-stage pharmaceutical company. The Company is engaged in developing a pipeline of prescription-based products, including rare cannabinoids and cannabinoid analogs, targeting the treatment of diseases with high unmet medical needs, as well as developing proprietary manufacturing technologies to produce rare cannabinoids for sale in the health and wellness industry. Its segments include InMed Pharmaceuticals and BayMedica. The InMed Pharmaceuticals segment is engaged in research and development of cannabinoid-based pharmaceutical products. The BayMedica segment is focused on developing manufacturing technologies to produce rare cannabinoids for sale in the health and wellness industry. Its two product candidates include INM-755 and INM-088. INM-755 is developed as a topical skin cream formulation containing cannabinol (CBN) for the treatment of symptoms related to Epidermolysis Bullosa (EB). INM-088 is used for the treatment of glaucoma.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

InMed Pharmaceuticals Inc has a Value Score of 81, which is considered to be undervalued.

InMed Pharmaceuticals Inc’s price-to-book ratio is higher than its peers. This could make InMed Pharmaceuticals Inc less attractive for value investors when compared to the industry median at 2.02.

You can read more about InMed Pharmaceuticals Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Leap Therapeutics Inc’s Value Grade

Value Grade:

Leap Therapeutics, Inc. is a biotechnology company. The Company is focused on developing targeted and immuno-oncology therapeutics. Its advanced clinical candidate, DKN-01, is a humanized monoclonal antibody targeting the Dickkopf-1 (DKK1) protein. DKN-01 is being developed in patients with esophagogastric, gynecologic, and colorectal cancers. DKK1 modulates the Wnt/Beta-catenin and PI3kinase/AKT signaling pathways and promotes tumor proliferation, metastasis, angiogenesis, and in mediating an immune suppressive tumor microenvironment through enhancing the activity of myeloid-derived suppressor cells and downregulating NK cell ligands on tumor cells. The Company?s pipeline includes FL-301, a humanized monoclonal antibody targeting Claudin18.2, being developed in patients with gastric and pancreatic cancer. Claudin18.2 regulates barrier properties and contributes to cell-to-cell adhesion. It also has preclinical antibody programs targeting Claudin18.2/CD137 and GDF15.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Leap Therapeutics Inc has a Value Score of 64, which is considered to be undervalued.

Leap Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Leap Therapeutics Inc less attractive for value investors when compared to the industry median at 2.02.

You can read more about Leap Therapeutics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Protara Therapeutics Inc’s Value Grade

Value Grade:

Protara Therapeutics, Inc. is a clinical-stage biotechnology company, which is engaged in advancing transformative therapies for people with cancer and rare diseases. The Company’s portfolio includes its lead candidate, TARA-002, an investigational cell-based therapy in development for the treatment of non-muscle invasive bladder cancer (NMIBC) and lymphatic malformations (LMs). The Company is evaluating TARA-002 in an ongoing Phase II trial in NMIBC patients with carcinoma in situ (CIS) who are unresponsive or naive to treatment with Bacillus Calmette-Guerin (BCG), as well as a Phase II trial in pediatric patients with LMs. In addition, the Company is developing IV Choline Chloride, an investigational phospholipid substrate replacement for patients on parenteral nutrition who are otherwise unable to meet their choline needs via oral or enteral routes.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Protara Therapeutics Inc has a Value Score of 91, which is considered to be undervalued.

Protara Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Protara Therapeutics Inc less attractive for value investors when compared to the industry median at 2.02.

You can read more about Protara Therapeutics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Talis Biomedical Corp’s Value Grade

Value Grade:

Talis Biomedical Corporation is engaged in transforming diagnostic testing by developing and commercializing products that are designed to enable molecular testing for infectious diseases and other conditions at the point of care. The Company is engaged in developing the Talis One system, a cloud-enabled molecular diagnostic platform. The Talis One system consists of compact instrument, single-use test cartridges and software that is designed to support a central cloud database, which work together and are designed to provide central laboratory levels of accuracy and be operated by an untrained user. It is also focused on developing Talis One assay kits for respiratory infections, and infections related to women's health and sexually transmitted infections (STIs). It is also developing influenza A and influenza B tests to be included as part of a respiratory panel with its COVID-19 assay (Respiratory Panel), as well as exploring adding a respiratory syncytial virus (RSV) test.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Talis Biomedical Corp has a Value Score of 64, which is considered to be undervalued.

Talis Biomedical Corp’s price-to-book ratio is higher than its peers. This could make Talis Biomedical Corp less attractive for value investors when compared to the industry median at 2.02.

You can read more about Talis Biomedical Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Xenetic Biosciences Inc’s Value Grade

Value Grade:

Xenetic Biosciences, Inc. is a biopharmaceutical company. The Company is focused on advancing its immune-oncology technologies addressing hard to treat cancers. The Company's DNase platform is designed to improve outcomes of existing treatments, including immunotherapies, by targeting neutrophil extracellular traps (NETs), which are weblike structures composed of extracellular chromatin coated with histones and other proteins. The Company is also developing its personalized Chimeric Antigen Receptor (CAR) T platform technology, XCART, to develop cell-based therapeutics targeting the B-cell receptor on the surface of an individual patient?s malignant tumor cells, for the treatment of B-cell lymphomas. It is also focused on developing its proprietary drug delivery platform, PolyXen, which uses the biological polymer polysialic acid (PSA) to prolong the drug's half-life and potentially improve the stability of therapeutic peptides and proteins.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Xenetic Biosciences Inc has a Value Score of 66, which is considered to be undervalued.

Xenetic Biosciences Inc’s price-to-book ratio is higher than its peers. This could make Xenetic Biosciences Inc less attractive for value investors when compared to the industry median at 2.02.

You can read more about Xenetic Biosciences Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Biotechnology & Medical Research Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Biotechnology & Medical Research stocks as well as other industrys.

Choosing Which of the 7 Best Biotechnology & Medical Research Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Bellerophon Therapeutics Inc stock has a Value Grade of B.
• Precision BioSciences Inc stock has a Value Grade of B.
• InMed Pharmaceuticals Inc stock has a Value Grade of A.
• Leap Therapeutics Inc stock has a Value Grade of B.
• Protara Therapeutics Inc stock has a Value Grade of A.
• Talis Biomedical Corp stock has a Value Grade of B.
• Xenetic Biosciences Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Biotechnology & Medical Research industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Biotechnology & Medical Research Stocks

Want to learn more about Biotechnology & Medical Research stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Biotechnology & Medical Research Stocks for Tuesday, March 19
• 3 Undervalued Biotechnology & Medical Research Stocks for Monday, March 18
• What You Need to Know About Tango Therapeutics Inc's Q4 Earnings
• Why Alkermes Plc’s (ALKS) Stock Is Down 4.24%

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