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OMCL vs. DOCS: Which Stock Is the Better Value Option?
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Investors with an interest in Medical Info Systems stocks have likely encountered both Omnicell (OMCL - Free Report) and Doximity (DOCS - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Omnicell and Doximity are holding a Zacks Rank of #1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 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.
OMCL currently has a forward P/E ratio of 21.99, while DOCS has a forward P/E of 40.92. We also note that OMCL has a PEG ratio of 3.53. 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. DOCS currently has a PEG ratio of 4.44.
Another notable valuation metric for OMCL is its P/B ratio of 1.1. 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, DOCS has a P/B of 10.41.
These metrics, and several others, help OMCL earn a Value grade of B, while DOCS has been given a Value grade of F.
Both OMCL and DOCS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OMCL is the superior value option right now.
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OMCL vs. DOCS: Which Stock Is the Better Value Option?
Investors with an interest in Medical Info Systems stocks have likely encountered both Omnicell (OMCL - Free Report) and Doximity (DOCS - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Omnicell and Doximity are holding a Zacks Rank of #1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 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.
OMCL currently has a forward P/E ratio of 21.99, while DOCS has a forward P/E of 40.92. We also note that OMCL has a PEG ratio of 3.53. 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. DOCS currently has a PEG ratio of 4.44.
Another notable valuation metric for OMCL is its P/B ratio of 1.1. 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, DOCS has a P/B of 10.41.
These metrics, and several others, help OMCL earn a Value grade of B, while DOCS has been given a Value grade of F.
Both OMCL and DOCS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OMCL is the superior value option right now.