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MD or GDRX: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical Services stocks have likely encountered both Pediatrix Medical Group (MD - Free Report) and GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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

Currently, Pediatrix Medical Group has a Zacks Rank of #2 (Buy), while GoodRx Holdings, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MD likely has seen a stronger improvement to its earnings outlook than GDRX has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

MD currently has a forward P/E ratio of 9.44, while GDRX has a forward P/E of 20.20. We also note that MD has a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GDRX currently has a PEG ratio of 1.23.

Another notable valuation metric for MD is its P/B ratio of 1.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GDRX has a P/B of 2.58.

These are just a few of the metrics contributing to MD's Value grade of A and GDRX's Value grade of C.

MD has seen stronger estimate revision activity and sports more attractive valuation metrics than GDRX, so it seems like value investors will conclude that MD is the superior option right now.


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Pediatrix Medical Group, Inc. (MD) - free report >>

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