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NXGN or OMCL: Which Is the Better Value Stock Right Now?
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Investors with an interest in Medical Info Systems stocks have likely encountered both Nextgen Healthcare and Omnicell (OMCL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Nextgen Healthcare and Omnicell are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that NXGN likely has seen a stronger improvement to its earnings outlook than OMCL has recently. But this is just one piece of the puzzle for value investors.
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.
NXGN currently has a forward P/E ratio of 17.58, while OMCL has a forward P/E of 47.05. We also note that NXGN has a PEG ratio of 2.07. 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 2.94.
Another notable valuation metric for NXGN is its P/B ratio of 2.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OMCL has a P/B of 7.21.
These metrics, and several others, help NXGN earn a Value grade of B, while OMCL has been given a Value grade of C.
NXGN stands above OMCL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NXGN is the superior value option right now.
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NXGN or OMCL: Which Is the Better Value Stock Right Now?
Investors with an interest in Medical Info Systems stocks have likely encountered both Nextgen Healthcare and Omnicell (OMCL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Nextgen Healthcare and Omnicell are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that NXGN likely has seen a stronger improvement to its earnings outlook than OMCL has recently. But this is just one piece of the puzzle for value investors.
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.
NXGN currently has a forward P/E ratio of 17.58, while OMCL has a forward P/E of 47.05. We also note that NXGN has a PEG ratio of 2.07. 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 2.94.
Another notable valuation metric for NXGN is its P/B ratio of 2.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OMCL has a P/B of 7.21.
These metrics, and several others, help NXGN earn a Value grade of B, while OMCL has been given a Value grade of C.
NXGN stands above OMCL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NXGN is the superior value option right now.