Investors with an interest in Medical Info Systems stocks have likely encountered both Computer Programs and Systems and Cerner . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Computer Programs and Systems and Cerner are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CPSI is likely seeing its earnings outlook improve to a greater extent. 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.
CPSI currently has a forward P/E ratio of 10.76, while CERN has a forward P/E of 25.51. We also note that CPSI has a PEG ratio of 0.72. 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. CERN currently has a PEG ratio of 2.
Another notable valuation metric for CPSI is its P/B ratio of 1.98. 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, CERN has a P/B of 7.07.
Based on these metrics and many more, CPSI holds a Value grade of A, while CERN has a Value grade of C.
CPSI sticks out from CERN in both our Zacks Rank and Style Scores models, so value investors will likely feel that CPSI is the better option right now.
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CPSI vs. CERN: Which Stock Should Value Investors Buy Now?
Investors with an interest in Medical Info Systems stocks have likely encountered both Computer Programs and Systems and Cerner . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Computer Programs and Systems and Cerner are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CPSI is likely seeing its earnings outlook improve to a greater extent. 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.
CPSI currently has a forward P/E ratio of 10.76, while CERN has a forward P/E of 25.51. We also note that CPSI has a PEG ratio of 0.72. 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. CERN currently has a PEG ratio of 2.
Another notable valuation metric for CPSI is its P/B ratio of 1.98. 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, CERN has a P/B of 7.07.
Based on these metrics and many more, CPSI holds a Value grade of A, while CERN has a Value grade of C.
CPSI sticks out from CERN in both our Zacks Rank and Style Scores models, so value investors will likely feel that CPSI is the better option right now.