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SOLV vs. MEDP: Which Stock Is the Better Value Option?
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Investors with an interest in Medical Services stocks have likely encountered both Solventum (SOLV - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Solventum has a Zacks Rank of #1 (Strong Buy), while Medpace has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SOLV likely has seen a stronger improvement to its earnings outlook than MEDP has recently. 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.
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.
SOLV currently has a forward P/E ratio of 12.56, while MEDP has a forward P/E of 38.33. We also note that SOLV has a PEG ratio of 3.03. 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 3.37.
Another notable valuation metric for SOLV is its P/B ratio of 3.54. 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, MEDP has a P/B of 87.39.
Based on these metrics and many more, SOLV holds a Value grade of B, while MEDP has a Value grade of D.
SOLV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SOLV is likely the superior value option right now.
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SOLV vs. MEDP: Which Stock Is the Better Value Option?
Investors with an interest in Medical Services stocks have likely encountered both Solventum (SOLV - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Solventum has a Zacks Rank of #1 (Strong Buy), while Medpace has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SOLV likely has seen a stronger improvement to its earnings outlook than MEDP has recently. 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.
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.
SOLV currently has a forward P/E ratio of 12.56, while MEDP has a forward P/E of 38.33. We also note that SOLV has a PEG ratio of 3.03. 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 3.37.
Another notable valuation metric for SOLV is its P/B ratio of 3.54. 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, MEDP has a P/B of 87.39.
Based on these metrics and many more, SOLV holds a Value grade of B, while MEDP has a Value grade of D.
SOLV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SOLV is likely the superior value option right now.