BLCO or DOCS: Which Is the Better Value Stock Right Now?
Investors interested in Medical Services stocks are likely familiar with Bausch + Lomb (BLCO) and Doximity (DOCS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Bausch + Lomb and Doximity are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BLCO is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
BLCO currently has a forward P/E ratio of 25.69, while DOCS has a forward P/E of 39.08. We also note that BLCO has a PEG ratio of 2.82. 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. DOCS currently has a PEG ratio of 8.52.
Another notable valuation metric for BLCO is its P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DOCS has a P/B of 6.52.
Based on these metrics and many more, BLCO holds a Value grade of B, while DOCS has a Value grade of D.
BLCO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BLCO is likely the superior value option right now.
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Bausch + Lomb Corporation (BLCO) : Free Stock Analysis Report
Doximity, Inc. (DOCS) : Free Stock Analysis Report
