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

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Molina and The Joint Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that MOH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 12.89, while JYNT has a forward P/E of 93.24. We also note that MOH has a PEG ratio of 0.98. 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 9.32.

Another notable valuation metric for MOH is its P/B ratio of 4.82. 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 128.21.

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

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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