Investors with an interest in Medical Info Systems stocks have likely encountered both AllScripts Healthcare (MDRX) and Omnicell (OMCL). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Currently, AllScripts Healthcare has a Zacks Rank of #2 (Buy), while Omnicell has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MDRX likely has seen a stronger improvement to its earnings outlook than OMCL has recently. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MDRX currently has a forward P/E ratio of 19.66, while OMCL has a forward P/E of 23.68. We also note that MDRX has a PEG ratio of 1.20. 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 1.54.
Another notable valuation metric for MDRX is its P/B ratio of 1.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, OMCL has a P/B of 3.64.
These are just a few of the metrics contributing to MDRX's Value grade of B and OMCL's Value grade of C.
MDRX has seen stronger estimate revision activity and sports more attractive valuation metrics than OMCL, so it seems like value investors will conclude that MDRX is the superior option right now.
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Allscripts Healthcare Solutions, Inc. (MDRX) : Free Stock Analysis Report
Omnicell, Inc. (OMCL) : Free Stock Analysis Report
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