OMCL vs. PRVA: Which Stock Should Value Investors Buy Now?
Investors interested in Medical Info Systems stocks are likely familiar with Omnicell (OMCL) and Privia Health (PRVA). 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 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.
Omnicell has a Zacks Rank of #1 (Strong Buy), while Privia Health has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OMCL has an improving earnings outlook. 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.
OMCL currently has a forward P/E ratio of 16.64, while PRVA has a forward P/E of 92.30. We also note that OMCL has a PEG ratio of 1.78. 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. PRVA currently has a PEG ratio of 2.53.
Another notable valuation metric for OMCL is its P/B ratio of 1.11. 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, PRVA has a P/B of 4.23.
These metrics, and several others, help OMCL earn a Value grade of B, while PRVA has been given a Value grade of C.
OMCL has seen stronger estimate revision activity and sports more attractive valuation metrics than PRVA, so it seems like value investors will conclude that OMCL is the superior option right now.
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Omnicell, Inc. (OMCL) : Free Stock Analysis Report
Privia Health Group, Inc. (PRVA) : Free Stock Analysis Report
