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CPSI vs. OMCL: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Medical Info Systems sector might want to consider either Computer Programs and Systems or Omnicell (OMCL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Computer Programs and Systems has a Zacks Rank of #2 (Buy), while Omnicell 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 CPSI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
CPSI currently has a forward P/E ratio of 11.38, while OMCL has a forward P/E of 29.31. We also note that CPSI has a PEG ratio of 2.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OMCL currently has a PEG ratio of 2.34.
Another notable valuation metric for CPSI is its P/B ratio of 2.33. 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, OMCL has a P/B of 4.41.
These metrics, and several others, help CPSI earn a Value grade of B, while OMCL has been given a Value grade of D.
CPSI has seen stronger estimate revision activity and sports more attractive valuation metrics than OMCL, so it seems like value investors will conclude that CPSI is the superior option right now.
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CPSI vs. OMCL: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical Info Systems sector might want to consider either Computer Programs and Systems or Omnicell (OMCL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Computer Programs and Systems has a Zacks Rank of #2 (Buy), while Omnicell 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 CPSI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
CPSI currently has a forward P/E ratio of 11.38, while OMCL has a forward P/E of 29.31. We also note that CPSI has a PEG ratio of 2.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OMCL currently has a PEG ratio of 2.34.
Another notable valuation metric for CPSI is its P/B ratio of 2.33. 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, OMCL has a P/B of 4.41.
These metrics, and several others, help CPSI earn a Value grade of B, while OMCL has been given a Value grade of D.
CPSI has seen stronger estimate revision activity and sports more attractive valuation metrics than OMCL, so it seems like value investors will conclude that CPSI is the superior option right now.