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

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Investors looking for stocks in the Medical - HMOs sector might want to consider either Molina (MOH - Free Report) or The Joint Corp. (JYNT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Molina and The Joint Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. 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 only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

MOH currently has a forward P/E ratio of 12.53, while JYNT has a forward P/E of 83.90. We also note that MOH has a PEG ratio of 1. 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 8.39.

Another notable valuation metric for MOH is its P/B ratio of 4.71. 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, JYNT has a P/B of 100.05.

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

MOH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MOH is likely the superior value option right now.


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

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