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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 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 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. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MOH has an improving earnings outlook. However, value investors will care about much more than just this.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MOH currently has a forward P/E ratio of 12.16, while JYNT has a forward P/E of 85.08. We also note that MOH has a PEG ratio of 1.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JYNT currently has a PEG ratio of 8.51.

Another notable valuation metric for MOH is its P/B ratio of 4.93. 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 87.63.

These metrics, and several others, help MOH earn a Value grade of B, while JYNT has been given a 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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Molina Healthcare, Inc (MOH) - free report >>

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