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ELAN or USPH: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Medical - Outpatient and Home Healthcare sector might want to consider either Elanco Animal Health Incorporated (ELAN - Free Report) or U.S. Physical Therapy (USPH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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, Elanco Animal Health Incorporated is sporting a Zacks Rank of #1 (Strong Buy), while U.S. Physical Therapy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ELAN has an improving earnings outlook. But this is only part of the picture for value investors.
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.
ELAN currently has a forward P/E ratio of 23.42, while USPH has a forward P/E of 34.08. We also note that ELAN has a PEG ratio of 3.83. 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. USPH currently has a PEG ratio of 4.46.
Another notable valuation metric for ELAN is its P/B ratio of 1.51. 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, USPH has a P/B of 2.69.
These metrics, and several others, help ELAN earn a Value grade of B, while USPH has been given a Value grade of C.
ELAN stands above USPH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ELAN is the superior value option right now.
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ELAN or USPH: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Outpatient and Home Healthcare sector might want to consider either Elanco Animal Health Incorporated (ELAN - Free Report) or U.S. Physical Therapy (USPH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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, Elanco Animal Health Incorporated is sporting a Zacks Rank of #1 (Strong Buy), while U.S. Physical Therapy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ELAN has an improving earnings outlook. But this is only part of the picture for value investors.
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.
ELAN currently has a forward P/E ratio of 23.42, while USPH has a forward P/E of 34.08. We also note that ELAN has a PEG ratio of 3.83. 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. USPH currently has a PEG ratio of 4.46.
Another notable valuation metric for ELAN is its P/B ratio of 1.51. 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, USPH has a P/B of 2.69.
These metrics, and several others, help ELAN earn a Value grade of B, while USPH has been given a Value grade of C.
ELAN stands above USPH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ELAN is the superior value option right now.