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PGNY vs. HQY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical Services sector have probably already heard of Progyny (PGNY - Free Report) and HealthEquity (HQY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Progyny is sporting a Zacks Rank of #2 (Buy), while HealthEquity has a Zacks Rank of #3 (Hold). This means that PGNY'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 tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
PGNY currently has a forward P/E ratio of 13.82, while HQY has a forward P/E of 25.75. We also note that PGNY has a PEG ratio of 0.83. 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. HQY currently has a PEG ratio of 1.19.
Another notable valuation metric for PGNY is its P/B ratio of 3.75. 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, HQY has a P/B of 3.99.
These metrics, and several others, help PGNY earn a Value grade of B, while HQY has been given a Value grade of D.
PGNY has seen stronger estimate revision activity and sports more attractive valuation metrics than HQY, so it seems like value investors will conclude that PGNY is the superior option right now.
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PGNY vs. HQY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Services sector have probably already heard of Progyny (PGNY - Free Report) and HealthEquity (HQY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Progyny is sporting a Zacks Rank of #2 (Buy), while HealthEquity has a Zacks Rank of #3 (Hold). This means that PGNY'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 tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
PGNY currently has a forward P/E ratio of 13.82, while HQY has a forward P/E of 25.75. We also note that PGNY has a PEG ratio of 0.83. 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. HQY currently has a PEG ratio of 1.19.
Another notable valuation metric for PGNY is its P/B ratio of 3.75. 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, HQY has a P/B of 3.99.
These metrics, and several others, help PGNY earn a Value grade of B, while HQY has been given a Value grade of D.
PGNY has seen stronger estimate revision activity and sports more attractive valuation metrics than HQY, so it seems like value investors will conclude that PGNY is the superior option right now.