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

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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 offers value investors a better bang for their buck right now? We'll need to 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.

Currently, both Molina and The Joint Corp. are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

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 12.14, while JYNT has a forward P/E of 70.98. We also note that MOH has a PEG ratio of 0.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JYNT currently has a PEG ratio of 7.10.

Another notable valuation metric for MOH is its P/B ratio of 4.50. 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, JYNT has a P/B of 106.25.

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

Both MOH and JYNT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MOH is the superior value option right now.


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

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