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MDRX or VERI: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Technology Services sector have probably already heard of Veradigm (MDRX - Free Report) and Veritone, Inc. (VERI - 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.

Veradigm and Veritone, Inc. are sporting Zacks Ranks of #2 (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 MDRX 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

MDRX currently has a forward P/E ratio of 19.16, while VERI has a forward P/E of 845. We also note that MDRX has a PEG ratio of 1.20. 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. VERI currently has a PEG ratio of 134.77.

Another notable valuation metric for MDRX is its P/B ratio of 1.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VERI has a P/B of 4.31.

These metrics, and several others, help MDRX earn a Value grade of A, while VERI has been given a Value grade of F.

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


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