OPCH or USPH: Which Is the Better Value Stock Right Now?

USPH OPCH

Investors looking for stocks in the Medical - Outpatient and Home Healthcare sector might want to consider either Option Care (OPCH - Free Report) or U.S. Physical Therapy (USPH - 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.

Currently, Option Care has a Zacks Rank of #2 (Buy), while U.S. Physical Therapy has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OPCH likely has seen a stronger improvement to its earnings outlook than USPH has recently. 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 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.

OPCH currently has a forward P/E ratio of 36.31, while USPH has a forward P/E of 46.14. We also note that OPCH has a PEG ratio of 2.38. 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. USPH currently has a PEG ratio of 5.14.

Another notable valuation metric for OPCH is its P/B ratio of 4.50. 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, USPH has a P/B of 4.98.

Based on these metrics and many more, OPCH holds a Value grade of B, while USPH has a Value grade of C.

OPCH sticks out from USPH in both our Zacks Rank and Style Scores models, so value investors will likely feel that OPCH is the better option right now.

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