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PINC or HQY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical Services sector might want to consider either Premier, Inc. (PINC - Free Report) or HealthEquity (HQY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, Premier, Inc. has a Zacks Rank of #2 (Buy), while HealthEquity has a Zacks Rank of #3 (Hold). This means that PINC'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.
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.
PINC currently has a forward P/E ratio of 16.25, while HQY has a forward P/E of 46.77. We also note that PINC has a PEG ratio of 2.98. 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. HQY currently has a PEG ratio of 3.50.
Another notable valuation metric for PINC is its P/B ratio of 2.19. 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, HQY has a P/B of 3.11.
These are just a few of the metrics contributing to PINC's Value grade of B and HQY's Value grade of C.
PINC has seen stronger estimate revision activity and sports more attractive valuation metrics than HQY, so it seems like value investors will conclude that PINC is the superior option right now.
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PINC or HQY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical Services sector might want to consider either Premier, Inc. (PINC - Free Report) or HealthEquity (HQY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, Premier, Inc. has a Zacks Rank of #2 (Buy), while HealthEquity has a Zacks Rank of #3 (Hold). This means that PINC'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.
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.
PINC currently has a forward P/E ratio of 16.25, while HQY has a forward P/E of 46.77. We also note that PINC has a PEG ratio of 2.98. 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. HQY currently has a PEG ratio of 3.50.
Another notable valuation metric for PINC is its P/B ratio of 2.19. 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, HQY has a P/B of 3.11.
These are just a few of the metrics contributing to PINC's Value grade of B and HQY's Value grade of C.
PINC has seen stronger estimate revision activity and sports more attractive valuation metrics than HQY, so it seems like value investors will conclude that PINC is the superior option right now.