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CPSI vs. OMCL: Which Stock Is the Better Value Option?

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Investors with an interest in Medical Info Systems stocks have likely encountered both Computer Programs and Systems (CPSI - Free Report) and Omnicell (OMCL - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Computer Programs and Systems and Omnicell are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

CPSI currently has a forward P/E ratio of 13.19, while OMCL has a forward P/E of 41.49. We also note that CPSI has a PEG ratio of 0.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OMCL currently has a PEG ratio of 3.46.

Another notable valuation metric for CPSI is its P/B ratio of 2.31. 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 6.28.

These are just a few of the metrics contributing to CPSI's Value grade of A and OMCL's Value grade of D.

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


In-Depth Zacks Research for the Tickers Above


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Computer Programs and Systems, Inc. (CPSI) - free report >>

Omnicell, Inc. (OMCL) - free report >>

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