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OMCL vs. HIMS: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Medical Info Systems sector have probably already heard of Omnicell (OMCL - Free Report) and Hims & Hers Health, Inc. (HIMS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Omnicell and Hims & Hers Health, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OMCL has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

OMCL currently has a forward P/E ratio of 28.48, while HIMS has a forward P/E of 57.39. We also note that OMCL has a PEG ratio of 3.02. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HIMS currently has a PEG ratio of 5.48.

Another notable valuation metric for OMCL is its P/B ratio of 1.88. 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, HIMS has a P/B of 12.66.

These are just a few of the metrics contributing to OMCL's Value grade of B and HIMS's Value grade of C.

OMCL has seen stronger estimate revision activity and sports more attractive valuation metrics than HIMS, so it seems like value investors will conclude that OMCL is the superior option right now.


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