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MODV vs. AMEH: Which Stock Is the Better Value Option?

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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 is more attractive to value investors? We'll need to take a closer look to find out.

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.

Right now, ModivCare is sporting a Zacks Rank of #1 (Strong Buy), while Apollo Medical Holdings, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MODV likely has seen a stronger improvement to its earnings outlook than AMEH has recently. However, value investors will care about much more than just this.

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.

MODV currently has a forward P/E ratio of 17.63, while AMEH has a forward P/E of 41.09. We also note that MODV has a PEG ratio of 1.47. 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. AMEH currently has a PEG ratio of 2.05.

Another notable valuation metric for MODV is its P/B ratio of 4.79. 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, AMEH has a P/B of 8.24.

These metrics, and several others, help MODV earn a Value grade of B, while AMEH has been given a Value grade of C.

MODV 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 MODV is likely the superior value option right now.


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