AMN vs. DOCS: Which Stock Is the Better Value Option?
Investors interested in Medical Services stocks are likely familiar with AMN Healthcare Services (AMN) and Doximity (DOCS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
AMN Healthcare Services has a Zacks Rank of #2 (Buy), while Doximity has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMN has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
AMN currently has a forward P/E ratio of 11.25, while DOCS has a forward P/E of 46.55. We also note that AMN has a PEG ratio of 3.38. 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. DOCS currently has a PEG ratio of 12.56.
Another notable valuation metric for AMN is its P/B ratio of 3.63. 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 6.96.
These metrics, and several others, help AMN earn a Value grade of A, while DOCS has been given a Value grade of D.
AMN has seen stronger estimate revision activity and sports more attractive valuation metrics than DOCS, so it seems like value investors will conclude that AMN is the superior option right now.
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AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Doximity, Inc. (DOCS) : Free Stock Analysis Report
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