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How Does Neogen Compare to Its Peers?

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Neogen Corporation and its peers

In this article, we’ll compare Neogen (NEOG) to its peers and a few of the ETFs that invest in it.

  • The PE (price-to-earnings) ratios of Neogen (NEOG), Illumina (ILMN), IDEXX Laboratories (IDXX), Bio-Rad Laboratories (BIO), and VWR International (VWR) are 66.2x, 54.5x, 38.8x, 39.1x, and 23.7x, respectively, as of December 21, 2015.

  • The PBV (price-to-book value) ratios of Neogen, Illumina, Bio-Rad Laboratories, and VWR International are 6.1x, 14.0x, 1.7x, and 2.7x, respectively.

Thus, Neogen Corporation has outperformed its peers based on PE and PBV ratios.

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ETFs that invest in Neogen

The PowerShares S&P SmallCap Health Care Portfolio (PSCH) invests 2.6% of its holdings in Neogen. The ETF tracks a market cap–weighted index of small-cap healthcare companies taken from the S&P SmallCap 600 Capped Health Care Index.

The PowerShares DWA SmallCap Momentum Portfolio (DWAS) invests 0.80% of its holdings in Neogen. The ETF tracks an index of 200 small-cap securities with the best relative strength indicators, as determined by Dorsey, Wright & Associates’ proprietary methodology.

The iShares Morningstar Small-Cap Growth ETF (JKK) invests 0.46% of its holdings in Neogen. The ETF tracks a market cap–weighted index of US small-cap growth stocks.

Comparing Neogen and its ETFs

Now let’s compare Neogen (NEOG) with the above ETFs:

  • The YTD (year-to-date) price movements of Neogen, PSCH, DWAS, and JKK are 21.5%, 18.6%, -3.6%, and -1.6%, respectively.
  • The PE ratios of NEOG, PSCH, DWAS, and JKK are 66.2x, 47.9x, 35.9x, and 55.1x, respectively.
  • The PBV ratios of NEOG, PSCH, DWAS, and JKK are 6.1x, 3.2x, 3.5x, and 3.7x, respectively.

Thus, Neogen has outperformed these ETFs based on price movement as well as PE and PBV ratios.

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