Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Biotechnology & Medical Research industry for Friday, April 05, 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.

Intelligent Bio Solutions Inc’s Value Grade

Value Grade:

Intelligent Bio Solutions Inc. is a life sciences company. The Company is engaged in developing non-invasive, real-time monitoring and diagnostic tests for patients and their primary health practitioners. It operates through two segments, namely Commercially available Intelligent Fingerprinting Products (IFPG) and Development Stage Saliva Glucose Biosensor Platform (SGBP). Its product portfolio includes a portable drug screening system that works by analyzing fingerprint sweat using a one-time cartridge and portable handheld reader and also includes a development stage range of biosensor- based Point of Care diagnostic tests (POCT) that are developed in the modalities of clinical chemistry, immunology, tumor markers, allergens, and endocrinology. Its product candidate is the Saliva Glucose Biosensor (SGB), a POCT expected to substitute the finger pricking invasive blood glucose monitoring for diabetic patients. Its Biosensor Platform helps to detect multiple biological analytes.

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.

Intelligent Bio Solutions Inc has a Value Score of 89, which is considered to be undervalued.

When you look at Intelligent Bio Solutions Inc’s price-to-sales ratio at 0.12 compared to the industry median at 8.72, this company has a lower price relative to revenue compared to its peers. This could make Intelligent Bio Solutions 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. Intelligent Bio Solutions Inc’s shareholder yield is higher than its industry median ratio of (10.47%). 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. Intelligent Bio Solutions Inc’s price-to-book ratio is lower than its industry median ratio of 2.29. This could make Intelligent Bio Solutions Inc more attractive to investors looking for a new addition to their portfolio.

MEI Pharma Inc’s Value Grade

Value Grade:

MEI Pharma, Inc. is a clinical-stage pharmaceutical company, which is engaged in developing novel and differentiated cancer therapies. Its drug candidate pipeline includes Voruciclib, an oral cyclin-dependent kinase 9 (CDK9) inhibitor, and ME-344, an intravenous small molecule mitochondrial inhibitor targeting the oxidative phosphorylation pathway. Voruciclib is a potent and selective orally administered CDK9 inhibitor. Voruciclib is being studied in a Phase 1 trial evaluating dose and schedule in patients with acute myeloid leukemia (AML) and B-cell malignancies as a single-agent, and in combination with the B-cell lymphoma 2 (BCL) inhibitor venetoclax (marketed as Venclexta) in patients with AML. ME-344 is a novel mitochondrial inhibitor drug candidate that demonstrates tumor selective activity in pre-clinical studies. It targets the OXPHOS pathway involved in the production of adenosine triphosphate (ATP).

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.

MEI Pharma Inc has a Value Score of 98, which is considered to be undervalued.

MEI Pharma Inc’s price-earnings ratio is 1.3 compared to the industry median at 26.1. This means that it has a lower price relative to its earnings compared to its peers. This makes MEI Pharma Inc more attractive for value investors.

MEI Pharma Inc’s price-to-book ratio is higher than its peers. This could make MEI Pharma Inc less attractive for value investors when compared to the industry median at 2.29.

You can read more about MEI Pharma 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.

Surrozen Inc’s Value Grade

Value Grade:

Surrozen, Inc. is a clinical-stage biotechnology company. The Company is engaged in discovering and developing drug candidates to selectively modulate the Wnt pathway, a critical mediator of tissue repair, in a range of organs and tissues. The Company's lead product candidates are multi-specific, antibody-based therapeutics that mimic the roles of naturally occurring Wnt or R-spondin proteins, which are involved in activation and enhancement of the Wnt pathway. Its two technologies, Surrozen Wnt signal Activating Protein (SWAP) and Surrozen Wnt signal Enhancers Engineered for Tissue Specificity (SWEETS), enable it to potently and selectively modulate Wnt signaling through the generation of Wnt and R-spondin mimetics. SWAP molecules are designed to mimic the activity of naturally occurring Wnt proteins. SWEETS molecules are designed to amplify the body?s response to naturally occurring Wnt proteins. Its product candidates include SZN-1326, SZN-043 and SZN-413.

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.

Surrozen Inc has a Value Score of 97, which is considered to be undervalued.

Surrozen Inc’s price-to-book ratio is higher than its peers. This could make Surrozen Inc less attractive for value investors when compared to the industry median at 2.29.

You can read more about Surrozen 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 2.29.

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.

Virpax Pharmaceuticals Inc’s Value Grade

Value Grade:

Virpax Pharmaceuticals, Inc. is a preclinical-stage pharmaceutical company. The Company is focused on developing novel and drug delivery systems. Its drug-delivery systems and drug-releasing technologies being developed are focused on advancing non-opioid and non-addictive pain management treatments and treatments for central nervous system (CNS) disorders to enhance patients? quality of life. Its portfolio consists of multiple preclinical stage product candidates: Epoladerm, Probudur, Envelta, PES200, AnQlar and NobrXiol. Probudur is a drug product candidate based on a liposomal delivery system utilizing large multi-vesicular vesicles (LMVVs) encapsulating a high dose of the local anesthetic bupivacaine. PES200 enables the delivery of a metabolically labile peptide drug (Enkephalin) into the brain for post-traumatic stress disorder. NobrXiol is being developed by Nanomerics as an investigational formulation delivered via the nasal route to enhance Cannabidiol transport to the brain.

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.

Virpax Pharmaceuticals Inc has a Value Score of 72, which is considered to be undervalued.

Virpax Pharmaceuticals Inc’s price-to-book ratio is lower than its peers. This could make Virpax Pharmaceuticals Inc more attractive for value investors when compared to the industry median at 2.29.

You can read more about Virpax 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.

Voyager Therapeutics Inc’s Value Grade

Value Grade:

Voyager Therapeutics, Inc. is a biotechnology company focused on advancing neurogenetic medicines. The Company’s pipeline includes programs for Alzheimer’s disease, amyotrophic lateral sclerosis (ALS), Parkinson’s disease, and multiple other diseases of the central nervous system. Many of its programs are derived from its TRACER AAV capsid discovery platform, which is used to generate novel capsids and identify associated receptors to potentially enable high brain penetration with genetic medicines following intravenous dosing. Its pipeline of programs, all of which are in preclinical development, include Anti-Tau Antibody (VY-TAU01), SOD1 Silencing Gene Therapy Program, Tau Silencing Gene Therapy Program, Vectorized Anti-Amyloid Antibody Early Research Program, Friedreich’s Ataxia Program: VY-FXN01, GBA1 Gene Replacement Program, HD Program, and others. VY-TAU01 is for the treatment of Alzheimer’s disease. SOD1 Silencing Gene Therapy Program is for the treatment of ALS.

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.

Voyager Therapeutics Inc has a Value Score of 73, which is considered to be undervalued.

Voyager Therapeutics Inc’s price-earnings ratio is 3.1 compared to the industry median at 26.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Voyager Therapeutics Inc more attractive for value investors.

Voyager Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Voyager Therapeutics Inc less attractive for value investors when compared to the industry median at 2.29.

You can read more about Voyager 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.

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 6 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.

• Intelligent Bio Solutions Inc stock has a Value Grade of A.
• MEI Pharma Inc stock has a Value Grade of A.
• Surrozen Inc stock has a Value Grade of A.
• Protara Therapeutics Inc stock has a Value Grade of A.
• Virpax Pharmaceuticals Inc stock has a Value Grade of B.
• Voyager Therapeutics Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Biotechnology & Medical Research Stocks for Friday, April 05
• 4 Undervalued Biotechnology & Medical Research Stocks for Thursday, April 04
• Why Absci Corp’s (ABSI) Stock Is Up 5.27%
• Why Applied Therapeutics Inc’s (APLT) Stock Is Down 4.67%

AAII Disclaimer

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