MD vs. PGNY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Services sector have probably already heard of Pediatrix Medical Group (MD) and Progyny (PGNY). 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.
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 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.
Currently, Pediatrix Medical Group has a Zacks Rank of #2 (Buy), while Progyny has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MD is likely seeing its earnings outlook improve to a greater extent. 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 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.
MD currently has a forward P/E ratio of 9.01, while PGNY has a forward P/E of 90.77. We also note that MD has a PEG ratio of 2.25. 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. PGNY currently has a PEG ratio of 2.26.
Another notable valuation metric for MD is its P/B ratio of 1.26. 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, PGNY has a P/B of 8.82.
These are just a few of the metrics contributing to MD's Value grade of A and PGNY's Value grade of C.
MD sticks out from PGNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MD is the better option right now.
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Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report
Progyny, Inc. (PGNY) : Free Stock Analysis Report
