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CON vs. MEDP: 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 Concentra Group (CON - 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.
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, both Concentra Group and Medpace are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
CON currently has a forward P/E ratio of 24.46, while MEDP has a forward P/E of 36.10. We also note that CON has a PEG ratio of 1.47. 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. MEDP currently has a PEG ratio of 2.53.
Another notable valuation metric for CON is its P/B ratio of 10.66. 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, MEDP has a P/B of 31.18.
Based on these metrics and many more, CON holds a Value grade of B, while MEDP has a Value grade of C.
Both CON and MEDP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CON is the superior value option right now.
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CON vs. MEDP: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Services sector have probably already heard of Concentra Group (CON - 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.
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, both Concentra Group and Medpace are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
CON currently has a forward P/E ratio of 24.46, while MEDP has a forward P/E of 36.10. We also note that CON has a PEG ratio of 1.47. 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. MEDP currently has a PEG ratio of 2.53.
Another notable valuation metric for CON is its P/B ratio of 10.66. 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, MEDP has a P/B of 31.18.
Based on these metrics and many more, CON holds a Value grade of B, while MEDP has a Value grade of C.
Both CON and MEDP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CON is the superior value option right now.