Investors with an interest in Medical Services stocks have likely encountered both Ortho Clinical Diagnostics (OCDX) and Doximity (DOCS). 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Ortho Clinical Diagnostics and Doximity are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
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.
OCDX currently has a forward P/E ratio of 20.79, while DOCS has a forward P/E of 67.65. We also note that OCDX has a PEG ratio of 1.61. 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 8.46.
Another notable valuation metric for OCDX is its P/B ratio of 10.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DOCS has a P/B of 11.80.
These metrics, and several others, help OCDX earn a Value grade of B, while DOCS has been given a Value grade of F.
Both OCDX and DOCS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OCDX is the superior value option right now.
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OCDX vs. DOCS: Which Stock Is the Better Value Option?
Investors with an interest in Medical Services stocks have likely encountered both Ortho Clinical Diagnostics (OCDX) and Doximity (DOCS). 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Ortho Clinical Diagnostics and Doximity are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
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.
OCDX currently has a forward P/E ratio of 20.79, while DOCS has a forward P/E of 67.65. We also note that OCDX has a PEG ratio of 1.61. 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 8.46.
Another notable valuation metric for OCDX is its P/B ratio of 10.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DOCS has a P/B of 11.80.
These metrics, and several others, help OCDX earn a Value grade of B, while DOCS has been given a Value grade of F.
Both OCDX and DOCS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OCDX is the superior value option right now.