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MODV vs. PGNY: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Medical Services stocks have likely encountered both ModivCare (MODV - Free Report) and Progyny (PGNY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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 Progyny has a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MODV has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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 17.11, while PGNY has a forward P/E of 248.88. We also note that MODV has a PEG ratio of 1.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PGNY currently has a PEG ratio of 11.82.

Another notable valuation metric for MODV is its P/B ratio of 4.27. 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, PGNY has a P/B of 12.75.

These are just a few of the metrics contributing to MODV's Value grade of B and PGNY's Value grade of D.

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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Progyny, Inc. (PGNY) - free report >>

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