5 Health Care Stocks Trading with Low Price-Earnings Ratios

Co-Diagnostics makes the list

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Apr 21, 2021
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As of April 21, the GuruFocus All-in-One Screener, a Premium feature, found that the following guru-owned utilities have low price-earnings ratios. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.

Co-Diagnostics

With a market cap of $254.27 million, Co-Diagnostics Inc. (CODX) has a price-earnings ratio of 6.16 and a price-book ratio of 3.80. According to the DCF calculator, the stock has a fair value of $21.25 while trading at $8.87.

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The stock has declined 35.02% over the past 12 months and is now 71.38% below its 52-week high and 12.85% above its 52-week low.

The molecular diagnostics company has a GuruFocus profitability rating of 1 out of 10. The return on equity of 122.24% and return on assets of 114.81% are outperforming 97% of companies in the medical diagnostics and research industry. Its financial strength is rated 10 out of 10 with no debt.

Kamada

With a $272.55 million market cap, Kamada Ltd. (KMDA) is trading with a price-earnings ratio of 15.63 and a price-book ratio of 1.53. According to the DCF calculator, the stock has a fair value of $5.76 while trading at $6.17.

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The share price has declined 7.08% over the past 12 months and is now 53.71% below the 52-week high and 6.75% above the 52-week low.

The company, which develops therapeutics using protein purification proprietary technology, has a GuruFocus profitability rating of 6 out of 10. The return on equity of 10.37% and return on assets of 8.62% are outperforming 67% of companies in the drug manufacturers industry. Its financial strength is rated 8 out of 10 with a cash-debt ratio of 22.12.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 2.79% of outstanding shares, followed by Catherine Wood (Trades, Portfolio) with 0.47%.

Surface Oncology

With a market cap of $283.33 million, Surface Oncology Inc. (SURF) is trading with a price-earnings ratio of 4.62 and a price-book ratio of 1.77. According to the DCF calculator, the stock has a fair value of $21.70 while trading at $6.79.

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Shares have climbed 155.26% over the past 12 months and are now 52.85% below the 52-week high and 311.52% above the 52-week low.

The clinical-stage immuno-oncology company has a GuruFocus profitability rank of 1 out of 10. The return on equity of 62.11% and return on assets of 38.07% are outperforming 97% of companies in the biotechnology industry. Its financial strength is rated 7 out of 10 with a cash-debt ratio of 3.56.

Wood is the company's largest guru shareholder with 6.25% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 1.02% and Jeremy Grantham (Trades, Portfolio) with 0.62%.

BioDelivery Sciences

BioDelivery Sciences International Inc. (BDSI) has a market cap of $344.95 million and is trading with a price-earnings ratio of 13.68 and a price-book ratio of 3.20. According to the DCF calculator, the stock has a fair value of $3.69 while trading at $3.40.

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Shares have declined 16.89% over the past 12 months and are now trading 37.25% below the 52-week high and 12.50% above the 52-week low.

The commercial-stage specialty pharmaceutical company has a GuruFocus profitability rating of 3 out of 10. The return on equity of 29.54% and return on assets of 12.04 are outperforming 93% of competitors in the industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 1.42.

The company's largest guru shareholder is Simons' firm with 0.31% of outstanding shares.

Viemed Healthcare

Viemed Healthcare Inc. (VMD) has a market cap of $383.12 million. Its shares are trading with a price-earnings ratio of 11.57 and a price-book ratio of 4.55. According to the DCF calculator, the stock has a fair value of $11.51 while trading at $9.70.

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Shares have risen 55.20% over the past 12 months and are currently 19.03% below the 52-week high and 143.72% above the 52-week low.

The company, which provides equipment and home therapy, has a GuruFocus profitability rating of 6 out of 10. The return on equity of 49.79% and return on assets of 31.34% are outperforming 96% of companies in the medical devices and instruments industry. Its financial strength is rated 8 out of 10 with a cash-debt ratio of 2.78.

Simons' firm is the company's largest guru shareholder with 0.21% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.16%.

Disclosure: I do not own any stocks mentioned

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