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AVTR vs. DOCS: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Medical Services sector might want to consider either Avantor, Inc. (AVTR) or Doximity (DOCS). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Avantor, Inc. has a Zacks Rank of #2 (Buy), while Doximity has a Zacks Rank of #3 (Hold). This means that AVTR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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.

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.

AVTR currently has a forward P/E ratio of 20.89, while DOCS has a forward P/E of 53.12. We also note that AVTR has a PEG ratio of 0.67. 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. DOCS currently has a PEG ratio of 8.63.

Another notable valuation metric for AVTR is its P/B ratio of 5.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DOCS has a P/B of 8.32.

These are just a few of the metrics contributing to AVTR's Value grade of B and DOCS's Value grade of D.

AVTR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AVTR is likely the superior value option right now.


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Avantor, Inc. (AVTR) : Free Stock Analysis Report
 
Doximity, Inc. (DOCS) : Free Stock Analysis Report
 
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