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DH or PRVA: Which Is the Better Value Stock Right Now?
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Investors interested in Medical Info Systems stocks are likely familiar with Definitive Healthcare Corp. (DH - Free Report) and Privia Health (PRVA - 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.
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.
Currently, Definitive Healthcare Corp. has a Zacks Rank of #2 (Buy), while Privia Health has a Zacks Rank of #4 (Sell). This means that DH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
DH currently has a forward P/E ratio of 14.23, while PRVA has a forward P/E of 69.50. We also note that DH has a PEG ratio of 1.26. 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 2.24.
Another notable valuation metric for DH is its P/B ratio of 0.52. 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, PRVA has a P/B of 3.42.
Based on these metrics and many more, DH holds a Value grade of B, while PRVA has a Value grade of C.
DH sticks out from PRVA in both our Zacks Rank and Style Scores models, so value investors will likely feel that DH is the better option right now.
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DH or PRVA: Which Is the Better Value Stock Right Now?
Investors interested in Medical Info Systems stocks are likely familiar with Definitive Healthcare Corp. (DH - Free Report) and Privia Health (PRVA - 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.
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.
Currently, Definitive Healthcare Corp. has a Zacks Rank of #2 (Buy), while Privia Health has a Zacks Rank of #4 (Sell). This means that DH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
DH currently has a forward P/E ratio of 14.23, while PRVA has a forward P/E of 69.50. We also note that DH has a PEG ratio of 1.26. 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 2.24.
Another notable valuation metric for DH is its P/B ratio of 0.52. 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, PRVA has a P/B of 3.42.
Based on these metrics and many more, DH holds a Value grade of B, while PRVA has a Value grade of C.
DH sticks out from PRVA in both our Zacks Rank and Style Scores models, so value investors will likely feel that DH is the better option right now.