Investors with an interest in Medical Info Systems stocks have likely encountered both Definitive Healthcare Corp. (DH) and Privia Health (PRVA). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Definitive Healthcare Corp. and Privia Health are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DH has an improving earnings outlook. 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.
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.
DH currently has a forward P/E ratio of 12.07, while PRVA has a forward P/E of 137.64. We also note that DH has a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PRVA currently has a PEG ratio of 5.23.
Another notable valuation metric for DH is its P/B ratio of 0.70. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PRVA has a P/B of 3.63.
These metrics, and several others, help DH earn a Value grade of A, while PRVA has been given a Value grade of C.
DH stands above PRVA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DH is the superior value option right now.
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Free: See Our Top Stock And 4 Runners UpDefinitive Healthcare Corp. (DH) : Free Stock Analysis Report
Privia Health Group, Inc. (PRVA) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
