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CPSI or OMCL: Which Is the Better Value Stock Right Now?
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Investors interested in Medical Info Systems stocks are likely familiar with Computer Programs and Systems and Omnicell (OMCL - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Computer Programs and Systems and Omnicell are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CPSI likely has seen a stronger improvement to its earnings outlook than OMCL has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
CPSI currently has a forward P/E ratio of 9.08, while OMCL has a forward P/E of 21.34. We also note that CPSI has a PEG ratio of 1.82. 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. OMCL currently has a PEG ratio of 2.13.
Another notable valuation metric for CPSI is its P/B ratio of 1.73. 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, OMCL has a P/B of 3.25.
These are just a few of the metrics contributing to CPSI's Value grade of B and OMCL's Value grade of D.
CPSI sticks out from OMCL in both our Zacks Rank and Style Scores models, so value investors will likely feel that CPSI is the better option right now.
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CPSI or OMCL: Which Is the Better Value Stock Right Now?
Investors interested in Medical Info Systems stocks are likely familiar with Computer Programs and Systems and Omnicell (OMCL - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Computer Programs and Systems and Omnicell are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CPSI likely has seen a stronger improvement to its earnings outlook than OMCL has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
CPSI currently has a forward P/E ratio of 9.08, while OMCL has a forward P/E of 21.34. We also note that CPSI has a PEG ratio of 1.82. 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. OMCL currently has a PEG ratio of 2.13.
Another notable valuation metric for CPSI is its P/B ratio of 1.73. 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, OMCL has a P/B of 3.25.
These are just a few of the metrics contributing to CPSI's Value grade of B and OMCL's Value grade of D.
CPSI sticks out from OMCL in both our Zacks Rank and Style Scores models, so value investors will likely feel that CPSI is the better option right now.