Yahoo Finance CPSI vs. OMCL: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Info Systems sector have probably already heard of Computer Programs and Systems (CPSI) and Omnicell (OMCL). But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Computer Programs and Systems and Omnicell are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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.
CPSI currently has a forward P/E ratio of 11.42, while OMCL has a forward P/E of 29.87. We also note that CPSI has a PEG ratio of 0.76. 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 1.49.
Another notable valuation metric for CPSI is its P/B ratio of 2.10. 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 4.88.
These are just a few of the metrics contributing to CPSI's Value grade of A and OMCL's Value grade of C.
Both CPSI and OMCL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CPSI is the superior value option right now.
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Computer Programs and Systems, Inc. (CPSI) : Free Stock Analysis Report
Omnicell, Inc. (OMCL) : Free Stock Analysis Report
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