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First Choice Healthcare Solutions, Inc. (FCHS) - free report >>
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First Choice Healthcare Solutions, Inc. (FCHS) - free report >>
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SYNH vs. FCHS: Which Stock Is the Better Value Option?
Investors with an interest in Medical Services stocks have likely encountered both Syneos Health and First Choice Healthcare Solutions, Inc. (FCHS - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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, Syneos Health is sporting a Zacks Rank of #2 (Buy), while First Choice Healthcare Solutions, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SYNH likely has seen a stronger improvement to its earnings outlook than FCHS has recently. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SYNH currently has a forward P/E ratio of 17.52, while FCHS has a forward P/E of 21.67. We also note that SYNH has a PEG ratio of 1. 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. FCHS currently has a PEG ratio of 1.08.
Another notable valuation metric for SYNH is its P/B ratio of 1.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FCHS has a P/B of 2.20.
These are just a few of the metrics contributing to SYNH's Value grade of B and FCHS's Value grade of C.
SYNH stands above FCHS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SYNH is the superior value option right now.