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ENOV vs. OMCL: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Medical Info Systems sector have probably already heard of Enovis (ENOV - Free Report) and Omnicell (OMCL - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Both Enovis and Omnicell have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

ENOV currently has a forward P/E ratio of 24.56, while OMCL has a forward P/E of 30.25. We also note that ENOV has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OMCL currently has a PEG ratio of 1.51.

Another notable valuation metric for ENOV is its P/B ratio of 0.66. 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, OMCL has a P/B of 4.94.

Based on these metrics and many more, ENOV holds a Value grade of A, while OMCL has a Value grade of C.

Both ENOV and OMCL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENOV is the superior value option right now.


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