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MOH or JYNT: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Medical - HMOs sector have probably already heard of Molina (MOH - Free Report) and The Joint Corp. (JYNT - 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.

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 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.

Currently, Molina has a Zacks Rank of #1 (Strong Buy), while The Joint Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MOH is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

MOH currently has a forward P/E ratio of 13.30, while JYNT has a forward P/E of 41.45. We also note that MOH has a PEG ratio of 1.06. 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. JYNT currently has a PEG ratio of 4.14.

Another notable valuation metric for MOH is its P/B ratio of 4.94. 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, JYNT has a P/B of 124.05.

These metrics, and several others, help MOH earn a Value grade of A, while JYNT has been given a Value grade of D.

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


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Molina Healthcare, Inc (MOH) - free report >>

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