Back to top

Image: Bigstock

CON vs. MEDP: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Medical Services sector have probably already heard of Concentra Group (CON - Free Report) and Medpace (MEDP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

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

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.

CON currently has a forward P/E ratio of 15.79, while MEDP has a forward P/E of 24.40. We also note that CON has a PEG ratio of 2.02. 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. MEDP currently has a PEG ratio of 5.60.

Another notable valuation metric for CON is its P/B ratio of 8.78. 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, MEDP has a P/B of 15.02.

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

CON sticks out from MEDP in both our Zacks Rank and Style Scores models, so value investors will likely feel that CON is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Medpace Holdings, Inc. (MEDP) - free report >>

Concentra Group Holdings Parent, Inc. (CON) - free report >>

Published in