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MOH vs. JYNT: Which Stock Is the Better Value Option?

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Investors with an interest in Medical - HMOs stocks have likely encountered both 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Molina has a Zacks Rank of #2 (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. 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.

MOH currently has a forward P/E ratio of 14.81, while JYNT has a forward P/E of 72.39. We also note that MOH has a PEG ratio of 1.18. 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. JYNT currently has a PEG ratio of 7.24.

Another notable valuation metric for MOH is its P/B ratio of 5.55. 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, JYNT has a P/B of 86.32.

These are just a few of the metrics contributing to MOH's Value grade of A and JYNT's Value grade of D.

MOH stands above JYNT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MOH is the superior value option right now.


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

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