CNVY vs. OMCL: Which Stock Should Value Investors Buy Now?
CNVY vs. OMCL: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical Info Systems sector might want to consider either Convey Holding Parent, Inc. (CNVY) or Omnicell (OMCL). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Convey Holding Parent, Inc. and Omnicell are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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.
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.
CNVY currently has a forward P/E ratio of 29.41, while OMCL has a forward P/E of 43.07. We also note that CNVY has a PEG ratio of 0.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OMCL currently has a PEG ratio of 2.69.
Another notable valuation metric for CNVY is its P/B ratio of 1.09. 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 6.60.
These metrics, and several others, help CNVY earn a Value grade of B, while OMCL has been given a Value grade of C.
Both CNVY and OMCL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CNVY is the superior value option right now.
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Convey Holding Parent, Inc. (CNVY): Free Stock Analysis Report
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