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MD or RVTY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical Services stocks have likely encountered both Pediatrix Medical Group (MD - Free Report) and Revvity (RVTY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, Pediatrix Medical Group is sporting a Zacks Rank of #2 (Buy), while Revvity has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MD is likely seeing its earnings outlook improve to a greater extent. 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.

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.

MD currently has a forward P/E ratio of 8.04, while RVTY has a forward P/E of 25.15. We also note that MD has a PEG ratio of 1.81. 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. RVTY currently has a PEG ratio of 2.83.

Another notable valuation metric for MD is its P/B ratio of 1.17. 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, RVTY has a P/B of 1.87.

These metrics, and several others, help MD earn a Value grade of A, while RVTY has been given a Value grade of C.

MD 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 MD is likely the superior value option right now.


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Pediatrix Medical Group, Inc. (MD) - free report >>

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