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SGRY vs. MEDP: 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 Surgery Partners (SGRY - Free Report) and Medpace (MEDP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Surgery Partners is sporting a Zacks Rank of #2 (Buy), while Medpace has a Zacks Rank of #3 (Hold). This means that SGRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
SGRY currently has a forward P/E ratio of 24.06, while MEDP has a forward P/E of 39.39. We also note that SGRY has a PEG ratio of 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MEDP currently has a PEG ratio of 2.20.
Another notable valuation metric for SGRY is its P/B ratio of 1.08. 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, MEDP has a P/B of 20.51.
These are just a few of the metrics contributing to SGRY's Value grade of A and MEDP's Value grade of D.
SGRY 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 SGRY is likely the superior value option right now.
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SGRY vs. MEDP: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Services sector have probably already heard of Surgery Partners (SGRY - Free Report) and Medpace (MEDP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Surgery Partners is sporting a Zacks Rank of #2 (Buy), while Medpace has a Zacks Rank of #3 (Hold). This means that SGRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
SGRY currently has a forward P/E ratio of 24.06, while MEDP has a forward P/E of 39.39. We also note that SGRY has a PEG ratio of 1.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MEDP currently has a PEG ratio of 2.20.
Another notable valuation metric for SGRY is its P/B ratio of 1.08. 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, MEDP has a P/B of 20.51.
These are just a few of the metrics contributing to SGRY's Value grade of A and MEDP's Value grade of D.
SGRY 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 SGRY is likely the superior value option right now.