Yahoo Finance LTH vs. DOCS: Which Stock Should Value Investors Buy Now?
Investors with an interest in Medical Services stocks have likely encountered both Life Time Group Holdings, Inc. (LTH) 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Life Time Group Holdings, Inc. and Doximity are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that LTH likely has seen a stronger improvement to its earnings outlook than DOCS has recently. However, value investors will care about much more than just this.
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.
LTH currently has a forward P/E ratio of 32.31, while DOCS has a forward P/E of 36. We also note that LTH has a PEG ratio of 2.33. 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 5.01.
Another notable valuation metric for LTH is its P/B ratio of 2.02. 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 7.23.
These are just a few of the metrics contributing to LTH's Value grade of B and DOCS's Value grade of D.
LTH has seen stronger estimate revision activity and sports more attractive valuation metrics than DOCS, so it seems like value investors will conclude that LTH is the superior option right now.
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Life Time Group Holdings, Inc. (LTH) : Free Stock Analysis Report
Doximity, Inc. (DOCS) : Free Stock Analysis Report
