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GEHC or PRVA: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical Info Systems stocks have likely encountered both GE HealthCare Technologies (GEHC - Free Report) and Privia Health (PRVA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, GE HealthCare Technologies is sporting a Zacks Rank of #2 (Buy), while Privia Health has a Zacks Rank of #3 (Hold). This means that GEHC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

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.

GEHC currently has a forward P/E ratio of 18.61, while PRVA has a forward P/E of 118.99. We also note that GEHC has a PEG ratio of 1.82. 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. PRVA currently has a PEG ratio of 3.26.

Another notable valuation metric for GEHC is its P/B ratio of 4.52. 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, PRVA has a P/B of 5.34.

These are just a few of the metrics contributing to GEHC's Value grade of B and PRVA's Value grade of C.

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


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Privia Health Group, Inc. (PRVA) - free report >>

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