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MODV vs. AMEH: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical Services sector might want to consider either ModivCare (MODV - Free Report) or Apollo Medical Holdings, Inc. . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

ModivCare and Apollo Medical Holdings, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that MODV likely has seen a stronger improvement to its earnings outlook than AMEH has recently. But this is only part of the picture 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

MODV currently has a forward P/E ratio of 20.02, while AMEH has a forward P/E of 93.06. We also note that MODV has a PEG ratio of 1.67. 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. AMEH currently has a PEG ratio of 4.65.

Another notable valuation metric for MODV is its P/B ratio of 5.22. 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, AMEH has a P/B of 15.03.

These metrics, and several others, help MODV earn a Value grade of B, while AMEH has been given a Value grade of C.

MODV sticks out from AMEH 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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