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MODV vs. GDRX: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical Services sector have probably already heard of ModivCare (MODV - Free Report) and GoodRx Holdings, Inc. (GDRX - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, ModivCare has a Zacks Rank of #2 (Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MODV is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 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.
MODV currently has a forward P/E ratio of 27.13, while GDRX has a forward P/E of 123.23. We also note that MODV has a PEG ratio of 2.71. 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. GDRX currently has a PEG ratio of 3.70.
Another notable valuation metric for MODV is its P/B ratio of 5.96. 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, GDRX has a P/B of 20.33.
These metrics, and several others, help MODV earn a Value grade of B, while GDRX has been given a Value grade of D.
MODV sticks out from GDRX in both our Zacks Rank and Style Scores models, so value investors will likely feel that MODV is the better option right now.
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MODV vs. GDRX: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Services sector have probably already heard of ModivCare (MODV - Free Report) and GoodRx Holdings, Inc. (GDRX - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, ModivCare has a Zacks Rank of #2 (Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MODV is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 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.
MODV currently has a forward P/E ratio of 27.13, while GDRX has a forward P/E of 123.23. We also note that MODV has a PEG ratio of 2.71. 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. GDRX currently has a PEG ratio of 3.70.
Another notable valuation metric for MODV is its P/B ratio of 5.96. 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, GDRX has a P/B of 20.33.
These metrics, and several others, help MODV earn a Value grade of B, while GDRX has been given a Value grade of D.
MODV sticks out from GDRX in both our Zacks Rank and Style Scores models, so value investors will likely feel that MODV is the better option right now.