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MODV or AMEH: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical Services stocks have likely encountered both ModivCare (MODV - Free Report) and Apollo Medical Holdings, Inc. . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

ModivCare has a Zacks Rank of #1 (Strong Buy), while Apollo Medical Holdings, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MODV likely has seen a stronger improvement to its earnings outlook than AMEH has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

MODV currently has a forward P/E ratio of 18, while AMEH has a forward P/E of 66.70. We also note that MODV has a PEG ratio of 1.50. 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. AMEH currently has a PEG ratio of 3.34.

Another notable valuation metric for MODV is its P/B ratio of 4.69. 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, AMEH has a P/B of 10.77.

Based on these metrics and many more, MODV holds a Value grade of B, while AMEH has a Value grade of C.

MODV stands above AMEH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MODV is the superior value option right now.


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