ICLR or GDRX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical Services sector might want to consider either Icon PLC (ICLR) or GoodRx Holdings, Inc. (GDRX). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Icon PLC has a Zacks Rank of #2 (Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ICLR likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is just one piece of the puzzle for value investors.
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.
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.
ICLR currently has a forward P/E ratio of 19.81, while GDRX has a forward P/E of 26.55. We also note that ICLR has a PEG ratio of 1.37. 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. GDRX currently has a PEG ratio of 1.95.
Another notable valuation metric for ICLR is its P/B ratio of 2.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GDRX has a P/B of 3.04.
These are just a few of the metrics contributing to ICLR's Value grade of B and GDRX's Value grade of C.
ICLR sticks out from GDRX in both our Zacks Rank and Style Scores models, so value investors will likely feel that ICLR is the better option right now.
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ICON PLC (ICLR) : Free Stock Analysis Report
GoodRx Holdings, Inc. (GDRX) : Free Stock Analysis Report
