Rolls-Royce shares still dominate the headlines, whether it’s for submarine engines or small modular reactors (SMRs). The years-long recovery from a failing engineering firm to global aerospace giant has been nothing but spectacular.

But in recent months, that momentum has slowed. With Rolls now sporting a sky-high valuation, much of the easy money looks made. That’s why I’m turning my attention elsewhere.

After a sharp sell-off, OXB (LSE:OXB) looks like a more compelling UK bargain for value investors willing to look beyond short-term noise.

Why OXB’s drop may be overdone

Previously known as Oxford Biomedica, OXB’s a medical firm that specialises in making viral vectors for cell and gene therapies. The stock’s down 30% this year after two major clients, Novartis and Bristol Myers Squibb, paused enrolment in certain autoimmune CAR‑T trials.

The result was brutal, but not everybody believes the situation’s that bad. The brokerage Panmure Liberum has kept its Buy rating and 690p price target, arguing the reaction looks excessive. Autoimmune work represents only about 13% of OXB’s 48-programme pipeline, meaning most revenue sits elsewhere.

And earlier this week (2 September), positive sentiment ignited a small recovery, as traders likely concluded that the bad news was overblown. Consensus from eight analysts I reviewed imply 68% growth in the coming 12 months.

The real question is simple: does a 30% fall reflect bad results, or is it over-excessive?

The numbers behind the story

So how do the actual results look? In H1 2026, OXB reported revenue growth of about 9% to around £80m, driven by strong underlying demand and a record 17 new clients signed in the period.

Key metrics from the half-year update (as of 30 June) were:

• Revenue: around 9% growth to £80m.
• New clients: 17.
• Revenue backlog: £193m.
• Contracted client orders: £97m.
• Gross cash: £75m.
• Net cash: £21m.

These figures suggest a business still growing, just facing near-term challenges from client ordering delays. Not to mention a six-month delay on converting profitability at its Durham, North Carolina, site.

Full-year 2026 revenue guidance was cut to £180m-£200m from £220m-£240m, but the long-term story remains intact. Management still targets 25%-30% revenue growth in FY2027 and at least double-digit EBITDA margins.

The Durham delay hurts near-term absorption, but it doesn’t change the structural demand for viral vector capacity that OXB provides to its global clients.

Is now the time to buy?

Rolls-Royce offers safety and momentum, but limited growth potential from here. OXB offers something different: a beaten-down quality business with a £193m backlog, a solid client base, and a valuation that should be highly appealing to any value investor.

Still, the risks are real. Client delays hurt, and margins will stay pressured until revenue ramps. But for investors who can stomach volatility, the stock looks the better bargain at these levels.

The question isn’t so much about when (or if) it’ll recover, but whether the long-term earnings visibility makes the current price look ‘cheap’. I think it does – even though more bad news could send it lower.

Rolls may be the safer Hold. But OXB could be the smarter Buy for those seeking value in today’s market. For investors ready to take a calculated risk on quality, I see an opportunity here that’s worth careful consideration.

Should you invest £5,000 in OXB right now?

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Mark Hartley does not hold any positions in the companies mentioned.