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CPSI 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 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Computer Programs and Systems and Omnicell are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that CPSI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CPSI currently has a forward P/E ratio of 13.41, while OMCL has a forward P/E of 40.91. We also note that CPSI has a PEG ratio of 0.96. 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. OMCL currently has a PEG ratio of 3.41.
Another notable valuation metric for CPSI is its P/B ratio of 2.40. 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 6.28.
These are just a few of the metrics contributing to CPSI's Value grade of B and OMCL's Value grade of C.
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 Should Value Investors Buy Now?
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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Computer Programs and Systems and Omnicell are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that CPSI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CPSI currently has a forward P/E ratio of 13.41, while OMCL has a forward P/E of 40.91. We also note that CPSI has a PEG ratio of 0.96. 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. OMCL currently has a PEG ratio of 3.41.
Another notable valuation metric for CPSI is its P/B ratio of 2.40. 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 6.28.
These are just a few of the metrics contributing to CPSI's Value grade of B and OMCL's Value grade of C.
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.