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LTH or PACS: Which Is the Better Value Stock Right Now?

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Investors interested in Medical Services stocks are likely familiar with Life Time Group Holdings, Inc. (LTH - Free Report) and PACS Group, Inc. (PACS - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Life Time Group Holdings, Inc. has a Zacks Rank of #2 (Buy), while PACS Group, Inc. has a Zacks Rank of #3 (Hold) right now. This means that LTH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

LTH currently has a forward P/E ratio of 33.41, while PACS has a forward P/E of 38.83. We also note that LTH has a PEG ratio of 2.41. 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. PACS currently has a PEG ratio of 2.59.

Another notable valuation metric for LTH is its P/B ratio of 2.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PACS has a P/B of 10.54.

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

LTH sticks out from PACS in both our Zacks Rank and Style Scores models, so value investors will likely feel that LTH is the better option right now.


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