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OCDX or DOCS: Which Is the Better Value Stock Right Now?
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Investors interested in Medical Services stocks are likely familiar with Ortho Clinical Diagnostics and Doximity, Inc. (DOCS - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ortho Clinical Diagnostics is sporting a Zacks Rank of #2 (Buy), while Doximity, Inc. has a Zacks Rank of #3 (Hold). This means that OCDX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
OCDX currently has a forward P/E ratio of 26.79, while DOCS has a forward P/E of 178.33. We also note that OCDX has a PEG ratio of 0.68. 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. DOCS currently has a PEG ratio of 22.29.
Another notable valuation metric for OCDX is its P/B ratio of 11.55. 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, DOCS has a P/B of 18.48.
These metrics, and several others, help OCDX earn a Value grade of B, while DOCS has been given a Value grade of D.
OCDX stands above DOCS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OCDX is the superior value option right now.
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OCDX or DOCS: Which Is the Better Value Stock Right Now?
Investors interested in Medical Services stocks are likely familiar with Ortho Clinical Diagnostics and Doximity, Inc. (DOCS - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ortho Clinical Diagnostics is sporting a Zacks Rank of #2 (Buy), while Doximity, Inc. has a Zacks Rank of #3 (Hold). This means that OCDX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
OCDX currently has a forward P/E ratio of 26.79, while DOCS has a forward P/E of 178.33. We also note that OCDX has a PEG ratio of 0.68. 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. DOCS currently has a PEG ratio of 22.29.
Another notable valuation metric for OCDX is its P/B ratio of 11.55. 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, DOCS has a P/B of 18.48.
These metrics, and several others, help OCDX earn a Value grade of B, while DOCS has been given a Value grade of D.
OCDX stands above DOCS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OCDX is the superior value option right now.