Investors interested in Medical Info Systems stocks are likely familiar with 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Omnicell has a Zacks Rank of #2 (Buy), while Hims & Hers Health, Inc. has a Zacks Rank of #3 (Hold) 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 also try to analyze a wide range of traditional figures and metrics to help determine whether 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 23.87, while HIMS has a forward P/E of 81.15. We also note that OMCL has a PEG ratio of 2.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HIMS currently has a PEG ratio of 7.75.
Another notable valuation metric for OMCL is its P/B ratio of 1.49. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HIMS has a P/B of 15.35.
Based on these metrics and many more, OMCL holds a Value grade of B, while HIMS has 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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