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MOH vs. JYNT: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Medical - HMOs stocks have likely encountered both Molina (MOH - Free Report) and The Joint Corp. (JYNT - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Molina has a Zacks Rank of #1 (Strong Buy), while The Joint Corp. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MOH likely has seen a stronger improvement to its earnings outlook than JYNT has recently. But this is just one factor that value investors are interested in.

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.

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.

MOH currently has a forward P/E ratio of 14.43, while JYNT has a forward P/E of 27.86. We also note that MOH has a PEG ratio of 1.27. 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. JYNT currently has a PEG ratio of 2.79.

Another notable valuation metric for MOH is its P/B ratio of 5.35. 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, JYNT has a P/B of 83.39.

These are just a few of the metrics contributing to MOH's Value grade of B and JYNT's Value grade of D.

MOH has seen stronger estimate revision activity and sports more attractive valuation metrics than JYNT, so it seems like value investors will conclude that MOH is the superior option right now.


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