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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 and 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.
Right now, both Computer Programs and Systems and Omnicell are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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 13.58, while OMCL has a forward P/E of 41.48. We also note that CPSI has a PEG ratio of 0.95. 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 3.46.
Another notable valuation metric for CPSI is its P/B ratio of 2.52. 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 6.33.
Based on these metrics and many more, CPSI holds a Value grade of A, while OMCL has a 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.
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CPSI vs. OMCL: Which Stock Is the Better Value Option?
Investors with an interest in Medical Info Systems stocks have likely encountered both Computer Programs and Systems and 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.
Right now, both Computer Programs and Systems and Omnicell are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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 13.58, while OMCL has a forward P/E of 41.48. We also note that CPSI has a PEG ratio of 0.95. 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 3.46.
Another notable valuation metric for CPSI is its P/B ratio of 2.52. 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 6.33.
Based on these metrics and many more, CPSI holds a Value grade of A, while OMCL has a 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.