Investors with an interest in Medical Info Systems stocks have likely encountered both Omnicell (OMCL) and Hims & Hers Health, Inc. (HIMS). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Omnicell has a Zacks Rank of #2 (Buy), while Hims & Hers Health, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OMCL is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
OMCL currently has a forward P/E ratio of 20.30, while HIMS has a forward P/E of 94.83. We also note that OMCL has a PEG ratio of 3.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HIMS currently has a PEG ratio of 3.83.
Another notable valuation metric for OMCL is its P/B ratio of 1.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HIMS has a P/B of 22.76.
These metrics, and several others, help OMCL earn a Value grade of A, while HIMS has been given a Value grade of D.
OMCL has seen stronger estimate revision activity and sports more attractive valuation metrics than HIMS, so it seems like value investors will conclude that OMCL is the superior option right now.
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Omnicell, Inc. (OMCL): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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