Forget Vertex, Biogen Is a Better Value Stock
Among pharmaceutical industry investors, Vertex Pharmaceuticals (NASDAQ: VRTX) is a broadly popular stock thanks to its impressive year-over-year quarterly earnings growth of 124.4% and its proven history of successful drug development efforts. But the stock's popularity may have driven its price up to the point where it is no longer a good bargain compared with the slightly smaller and less rapidly growing Biogen (NASDAQ: BIIB).
At first glance, however, Biogen doesn't look like a favorable investment. After all, Biogen's stock is down for the year because of a handful of difficult setbacks, whereas Vertex's has grown more than 25% so far. As it turns out, Biogen's true value lies in its larger drug-development pipeline as well as its operational efficiency, both of which have laid a strong foundation for the company to be more successful than Vertex in the long term.
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Source Fool.com
