Investors interested in Medical Info Systems stocks are likely familiar with Computer Programs and Systems (CPSI) and Tabula Rasa Healthcare (TRHC). 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Computer Programs and Systems and Tabula Rasa Healthcare are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CPSI has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CPSI currently has a forward P/E ratio of 12.88, while TRHC has a forward P/E of 91.66. We also note that CPSI has a PEG ratio of 1.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRHC currently has a PEG ratio of 3.67.
Another notable valuation metric for CPSI is its P/B ratio of 2.63. 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, TRHC has a P/B of 15.54.
These are just a few of the metrics contributing to CPSI's Value grade of B and TRHC's Value grade of D.
CPSI sticks out from TRHC in both our Zacks Rank and Style Scores models, so value investors will likely feel that CPSI is the better option right now.
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Computer Programs and Systems, Inc. (CPSI) : Free Stock Analysis Report
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