Investors interested in stocks from the Medical Info Systems sector have probably already heard of Syneos Health and Cerner . But which of these two stocks presents investors with the better value opportunity right now? 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.
Currently, Syneos Health has a Zacks Rank of #2 (Buy), while Cerner has a Zacks Rank of #4 (Sell). This means that SYNH'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 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 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.
SYNH currently has a forward P/E ratio of 17.45, while CERN has a forward P/E of 25.46. We also note that SYNH has a PEG ratio of 1.66. 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. CERN currently has a PEG ratio of 1.93.
Another notable valuation metric for SYNH is its P/B ratio of 2.03. 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, CERN has a P/B of 4.60.
These metrics, and several others, help SYNH earn a Value grade of B, while CERN has been given a Value grade of C.
SYNH sticks out from CERN in both our Zacks Rank and Style Scores models, so value investors will likely feel that SYNH is the better option right now.
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SYNH vs. CERN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Info Systems sector have probably already heard of Syneos Health and Cerner . But which of these two stocks presents investors with the better value opportunity right now? 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.
Currently, Syneos Health has a Zacks Rank of #2 (Buy), while Cerner has a Zacks Rank of #4 (Sell). This means that SYNH'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 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 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.
SYNH currently has a forward P/E ratio of 17.45, while CERN has a forward P/E of 25.46. We also note that SYNH has a PEG ratio of 1.66. 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. CERN currently has a PEG ratio of 1.93.
Another notable valuation metric for SYNH is its P/B ratio of 2.03. 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, CERN has a P/B of 4.60.
These metrics, and several others, help SYNH earn a Value grade of B, while CERN has been given a Value grade of C.
SYNH sticks out from CERN in both our Zacks Rank and Style Scores models, so value investors will likely feel that SYNH is the better option right now.