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OMCL vs. HIMS: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical Info Systems sector might want to consider either Omnicell (OMCL - Free Report) or Hims & Hers Health, Inc. (HIMS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Omnicell and Hims & Hers Health, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that OMCL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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 21.69, while HIMS has a forward P/E of 48.41. We also note that OMCL has a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HIMS currently has a PEG ratio of 2.78.

Another notable valuation metric for OMCL is its P/B ratio of 1.37. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HIMS has a P/B of 12.35.

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

OMCL sticks out from HIMS in both our Zacks Rank and Style Scores models, so value investors will likely feel that OMCL is the better option right now.

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