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OGN or MEDP: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical Services sector might want to consider either Organon (OGN - Free Report) or Medpace (MEDP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Organon and Medpace are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that OGN'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 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OGN currently has a forward P/E ratio of 2.47, while MEDP has a forward P/E of 24.59. We also note that OGN has a PEG ratio of 0.94. 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. MEDP currently has a PEG ratio of 5.64.
Another notable valuation metric for OGN is its P/B ratio of 4.54. 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, MEDP has a P/B of 15.1.
These are just a few of the metrics contributing to OGN's Value grade of A and MEDP's Value grade of C.
OGN has seen stronger estimate revision activity and sports more attractive valuation metrics than MEDP, so it seems like value investors will conclude that OGN is the superior option right now.
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OGN or MEDP: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical Services sector might want to consider either Organon (OGN - Free Report) or Medpace (MEDP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Organon and Medpace are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that OGN'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 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OGN currently has a forward P/E ratio of 2.47, while MEDP has a forward P/E of 24.59. We also note that OGN has a PEG ratio of 0.94. 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. MEDP currently has a PEG ratio of 5.64.
Another notable valuation metric for OGN is its P/B ratio of 4.54. 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, MEDP has a P/B of 15.1.
These are just a few of the metrics contributing to OGN's Value grade of A and MEDP's Value grade of C.
OGN has seen stronger estimate revision activity and sports more attractive valuation metrics than MEDP, so it seems like value investors will conclude that OGN is the superior option right now.