AHCO vs. HLN: Which Stock Should Value Investors Buy Now?
Investors interested in Medical - Products stocks are likely familiar with AdaptHealth Corp. (AHCO) and Haleon PLC Sponsored ADR (HLN). 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.
AdaptHealth Corp. has a Zacks Rank of #2 (Buy), while Haleon PLC Sponsored ADR has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AHCO has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
AHCO currently has a forward P/E ratio of 11.77, while HLN has a forward P/E of 17.65. We also note that AHCO has a PEG ratio of 0.68. 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. HLN currently has a PEG ratio of 2.69.
Another notable valuation metric for AHCO is its P/B ratio of 0.96. 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, HLN has a P/B of 1.85.
These metrics, and several others, help AHCO earn a Value grade of A, while HLN has been given a Value grade of C.
AHCO stands above HLN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AHCO is the superior value option right now.
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AdaptHealth Corp. (AHCO) : Free Stock Analysis Report
Haleon PLC Sponsored ADR (HLN) : Free Stock Analysis Report
