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GEHC vs. PRVA: Which Stock Is the Better Value Option?

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Investors with an interest in Medical Info Systems stocks have likely encountered both GE HealthCare Technologies (GEHC - Free Report) and Privia Health (PRVA - 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, GE HealthCare Technologies is sporting a Zacks Rank of #2 (Buy), while Privia Health has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GEHC has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

GEHC currently has a forward P/E ratio of 21.38, while PRVA has a forward P/E of 117.90. We also note that GEHC has a PEG ratio of 3.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PRVA currently has a PEG ratio of 3.33.

Another notable valuation metric for GEHC is its P/B ratio of 5.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PRVA has a P/B of 5.57.

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

GEHC 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 GEHC is likely the superior value option right now.


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Privia Health Group, Inc. (PRVA) - free report >>

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