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SYNH vs. OMCL: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical Info Systems sector might want to consider either Syneos Health or Omnicell (OMCL - 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.

Right now, both Syneos Health and Omnicell are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SYNH currently has a forward P/E ratio of 15.41, while OMCL has a forward P/E of 26.16. We also note that SYNH has a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OMCL currently has a PEG ratio of 2.09.

Another notable valuation metric for SYNH is its P/B ratio of 1.77. 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, OMCL has a P/B of 3.82.

These metrics, and several others, help SYNH earn a Value grade of B, while OMCL has been given a Value grade of C.

Both SYNH and OMCL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SYNH is the superior value option right now.


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