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AMN vs. PGNY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Medical Services sector have probably already heard of AMN Healthcare Services (AMN - Free Report) and Progyny (PGNY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

AMN Healthcare Services has a Zacks Rank of #1 (Strong Buy), while Progyny has a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMN 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 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

AMN currently has a forward P/E ratio of 8.70, while PGNY has a forward P/E of 349.50. We also note that AMN has a PEG ratio of 7.84. 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 16.60.

Another notable valuation metric for AMN is its P/B ratio of 3.75. 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 10.70.

These metrics, and several others, help AMN earn a Value grade of B, while PGNY has been given a Value grade of D.

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


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