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SOLV or MEDP: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical Services stocks have likely encountered both Solventum (SOLV - Free Report) and Medpace (MEDP - 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, Solventum is sporting a Zacks Rank of #2 (Buy), while Medpace has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SOLV likely has seen a stronger improvement to its earnings outlook than MEDP has recently. But this is just one piece of the puzzle for value investors.
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.
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.
SOLV currently has a forward P/E ratio of 10.61, while MEDP has a forward P/E of 28.93. We also note that SOLV has a PEG ratio of 1.52. 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. MEDP currently has a PEG ratio of 1.75.
Another notable valuation metric for SOLV is its P/B ratio of 4.07. 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 13.68.
Based on these metrics and many more, SOLV holds a Value grade of B, while MEDP has a Value grade of C.
SOLV has seen stronger estimate revision activity and sports more attractive valuation metrics than MEDP, so it seems like value investors will conclude that SOLV is the superior option right now.
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SOLV or MEDP: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical Services stocks have likely encountered both Solventum (SOLV - Free Report) and Medpace (MEDP - 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, Solventum is sporting a Zacks Rank of #2 (Buy), while Medpace has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SOLV likely has seen a stronger improvement to its earnings outlook than MEDP has recently. But this is just one piece of the puzzle for value investors.
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.
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.
SOLV currently has a forward P/E ratio of 10.61, while MEDP has a forward P/E of 28.93. We also note that SOLV has a PEG ratio of 1.52. 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. MEDP currently has a PEG ratio of 1.75.
Another notable valuation metric for SOLV is its P/B ratio of 4.07. 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 13.68.
Based on these metrics and many more, SOLV holds a Value grade of B, while MEDP has a Value grade of C.
SOLV has seen stronger estimate revision activity and sports more attractive valuation metrics than MEDP, so it seems like value investors will conclude that SOLV is the superior option right now.