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PINC vs. HQY: Which Stock Is the Better Value Option?
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Investors with an interest in Medical Services stocks have likely encountered both Premier, Inc. (PINC - Free Report) and HealthEquity (HQY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Premier, Inc. and HealthEquity have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
PINC currently has a forward P/E ratio of 12.25, while HQY has a forward P/E of 48.15. We also note that PINC has a PEG ratio of 1.21. 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. HQY currently has a PEG ratio of 1.80.
Another notable valuation metric for PINC is its P/B ratio of 1.71. 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, HQY has a P/B of 2.79.
These metrics, and several others, help PINC earn a Value grade of A, while HQY has been given a Value grade of C.
Both PINC and HQY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PINC is the superior value option right now.
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PINC vs. HQY: Which Stock Is the Better Value Option?
Investors with an interest in Medical Services stocks have likely encountered both Premier, Inc. (PINC - Free Report) and HealthEquity (HQY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Premier, Inc. and HealthEquity have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
PINC currently has a forward P/E ratio of 12.25, while HQY has a forward P/E of 48.15. We also note that PINC has a PEG ratio of 1.21. 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. HQY currently has a PEG ratio of 1.80.
Another notable valuation metric for PINC is its P/B ratio of 1.71. 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, HQY has a P/B of 2.79.
These metrics, and several others, help PINC earn a Value grade of A, while HQY has been given a Value grade of C.
Both PINC and HQY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PINC is the superior value option right now.