Investors looking for stocks in the Medical Info Systems sector might want to consider either Omnicell (OMCL) or Hims & Hers Health, Inc. (HIMS). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Omnicell is sporting a Zacks Rank of #2 (Buy), while Hims & Hers Health, Inc. has a Zacks Rank of #3 (Hold). This means that OMCL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
OMCL currently has a forward P/E ratio of 21.43, while HIMS has a forward P/E of 77.26. We also note that OMCL has a PEG ratio of 2.49. 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 3.15.
Another notable valuation metric for OMCL is its P/B ratio of 1.26. 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 18.24.
These are just a few of the metrics contributing to OMCL's Value grade of B and HIMS's Value grade of D.
OMCL sticks out from HIMS in both our Zacks Rank and Style Scores models, so value investors will likely feel that OMCL is the better 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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