U.S. Markets close in 5 hrs 57 mins

MOH vs. JYNT: Which Stock Is the Better Value Option?

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors looking for stocks in the Medical - HMOs sector might want to consider either Molina (MOH) or The Joint Corp. (JYNT). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Molina and The Joint Corp. are sporting Zacks Ranks of #1 (Strong 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 MOH 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 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.

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.

MOH currently has a forward P/E ratio of 12.53, while JYNT has a forward P/E of 83.90. We also note that MOH has a PEG ratio of 1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JYNT currently has a PEG ratio of 8.39.

Another notable valuation metric for MOH is its P/B ratio of 4.71. 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, JYNT has a P/B of 100.05.

These are just a few of the metrics contributing to MOH's Value grade of A and JYNT's Value grade of D.

MOH 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 MOH is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
 
The Joint Corp. (JYNT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.