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MOH vs. JYNT: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Medical - HMOs sector might want to consider either Molina (MOH - Free Report) or The Joint Corp. (JYNT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Molina has a Zacks Rank of #1 (Strong Buy), while The Joint Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MOH 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.

MOH currently has a forward P/E ratio of 13.09, while JYNT has a forward P/E of 88.07. We also note that MOH has a PEG ratio of 0.99. 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 8.81.

Another notable valuation metric for MOH is its P/B ratio of 4.89. 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, JYNT has a P/B of 121.09.

Based on these metrics and many more, MOH holds a Value grade of A, while JYNT has a Value grade of F.

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


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Molina Healthcare, Inc (MOH) - free report >>

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