雅虎香港財經 SOLV vs. DOCS: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical Services sector have probably already heard of Solventum (SOLV) and Doximity (DOCS). But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, Solventum has a Zacks Rank of #2 (Buy), while Doximity has a Zacks Rank of #3 (Hold). This means that SOLV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
SOLV currently has a forward P/E ratio of 10.98, while DOCS has a forward P/E of 37.33. We also note that SOLV has a PEG ratio of 1.57. 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. DOCS currently has a PEG ratio of 4.15.
Another notable valuation metric for SOLV is its P/B ratio of 4.22. 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, DOCS has a P/B of 7.99.
These metrics, and several others, help SOLV earn a Value grade of B, while DOCS has been given a Value grade of D.
SOLV has seen stronger estimate revision activity and sports more attractive valuation metrics than DOCS, so it seems like value investors will conclude that SOLV is the superior option right now.
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Solventum Corporation (SOLV) : Free Stock Analysis Report
Doximity, Inc. (DOCS) : Free Stock Analysis Report
