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

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Investors interested in Medical Services stocks are likely familiar with 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Pediatrix Medical Group and Revvity are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. 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. But this is just one factor that value investors are interested in.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

MD currently has a forward P/E ratio of 9.04, while RVTY has a forward P/E of 25.53. We also note that MD has a PEG ratio of 1.66. 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. RVTY currently has a PEG ratio of 2.88.

Another notable valuation metric for MD is its P/B ratio of 1.35. 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, RVTY has a P/B of 1.90.

These are just a few of the metrics contributing to MD's Value grade of A and RVTY's Value grade of C.

MD stands above RVTY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MD is the superior value option right now.


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

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