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 is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Omnicell has a Zacks Rank of #2 (Buy), while Hims & Hers Health, Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that OMCL likely has seen a stronger improvement to its earnings outlook than HIMS has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 20.16, while HIMS has a forward P/E of 99.17. We also note that OMCL has a PEG ratio of 3.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HIMS currently has a PEG ratio of 4.04.
Another notable valuation metric for OMCL is its P/B ratio of 1.1. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HIMS has a P/B of 23.73.
These are just a few of the metrics contributing to OMCL's Value grade of A and HIMS's 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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