Yahoo Finance ELV vs. GDRX: Which Stock Is the Better Value Option?
Investors interested in Medical Services stocks are likely familiar with Elevance Health (ELV) and GoodRx Holdings, Inc. (GDRX). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Elevance Health and GoodRx Holdings, Inc. are both sporting a Zacks Rank of # 2 (Buy) right now. 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 just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ELV currently has a forward P/E ratio of 13.77, while GDRX has a forward P/E of 17.10. We also note that ELV has a PEG ratio of 1.12. 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. GDRX currently has a PEG ratio of 2.16.
Another notable valuation metric for ELV is its P/B ratio of 3.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GDRX has a P/B of 3.54.
These metrics, and several others, help ELV earn a Value grade of A, while GDRX has been given a Value grade of C.
Both ELV and GDRX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ELV is the superior value option right now.
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Elevance Health, Inc. (ELV) : Free Stock Analysis Report
GoodRx Holdings, Inc. (GDRX) : Free Stock Analysis Report
