Yahoo Finance AMED or USPH: Which Is the Better Value Stock Right Now?
Investors interested in Medical - Outpatient and Home Healthcare stocks are likely familiar with Amedisys (AMED) and U.S. Physical Therapy (USPH). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Amedisys and U.S. Physical Therapy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that AMED likely has seen a stronger improvement to its earnings outlook than USPH has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
AMED currently has a forward P/E ratio of 21.26, while USPH has a forward P/E of 31.96. We also note that AMED has a PEG ratio of 2.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. USPH currently has a PEG ratio of 3.53.
Another notable valuation metric for AMED is its P/B ratio of 2.78. 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, USPH has a P/B of 2.85.
Based on these metrics and many more, AMED holds a Value grade of B, while USPH has a Value grade of C.
AMED has seen stronger estimate revision activity and sports more attractive valuation metrics than USPH, so it seems like value investors will conclude that AMED is the superior option right now.
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Amedisys, Inc. (AMED) : Free Stock Analysis Report
U.S. Physical Therapy, Inc. (USPH) : Free Stock Analysis Report
