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LTH vs. DOCS: Which Stock Is the Better Value Option? August 28, 2024
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Investors interested in stocks from the Medical Services sector have probably already heard of Life Time Group Holdings, Inc. (LTH - Free Report) and Doximity (DOCS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Life Time Group Holdings, Inc. has a Zacks Rank of #2 (Buy), while Doximity has a Zacks Rank of #3 (Hold) right now. This means that LTH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
LTH currently has a forward P/E ratio of 32.89, while DOCS has a forward P/E of 35.03. We also note that LTH has a PEG ratio of 2.37. 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 3.90.
Another notable valuation metric for LTH is its P/B ratio of 2.06. 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, DOCS has a P/B of 7.47.
These are just a few of the metrics contributing to LTH's Value grade of A and DOCS's Value grade of D.
LTH 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 LTH is likely the superior value option right now.
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Investors interested in stocks from the Medical Services sector have probably already heard of Life Time Group Holdings, Inc. (LTH - Free Report) and Doximity (DOCS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Life Time Group Holdings, Inc. has a Zacks Rank of #2 (Buy), while Doximity has a Zacks Rank of #3 (Hold) right now. This means that LTH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
LTH currently has a forward P/E ratio of 32.89, while DOCS has a forward P/E of 35.03. We also note that LTH has a PEG ratio of 2.37. 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 3.90.
Another notable valuation metric for LTH is its P/B ratio of 2.06. 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, DOCS has a P/B of 7.47.
These are just a few of the metrics contributing to LTH's Value grade of A and DOCS's Value grade of D.
LTH 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 LTH is likely the superior value option right now.