AHCO vs. LZAGY: Which Stock Is the Better Value Option?
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Investors with an interest in Medical - Products stocks have likely encountered both AdaptHealth Corp. (AHCO) and Lonza Group Ag (LZAGY). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both AdaptHealth Corp. and Lonza Group Ag have 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. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AHCO currently has a forward P/E ratio of 10.15, while LZAGY has a forward P/E of 38.84. We also note that AHCO has a PEG ratio of 1.37. 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. LZAGY currently has a PEG ratio of 2.33.
Another notable valuation metric for AHCO is its P/B ratio of 0.91. 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, LZAGY has a P/B of 4.31.
These metrics, and several others, help AHCO earn a Value grade of A, while LZAGY has been given a Value grade of C.
Both AHCO and LZAGY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AHCO is the superior value option right now.
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AdaptHealth Corp. (AHCO) : Free Stock Analysis Report
Lonza Group Ag (LZAGY) : Free Stock Analysis Report