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AHCO vs. HLN: 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 - Free Report) and Haleon PLC Sponsored ADR (HLN - Free Report) . 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.

Right now, AdaptHealth Corp. is sporting a Zacks Rank of #2 (Buy), while Haleon PLC Sponsored ADR has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AHCO is likely seeing its earnings outlook improve to a greater extent. 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.

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.

AHCO currently has a forward P/E ratio of 10.18, while HLN has a forward P/E of 19.71. We also note that AHCO has a PEG ratio of 1.25. 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. HLN currently has a PEG ratio of 2.72.

Another notable valuation metric for AHCO is its P/B ratio of 0.97. 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, HLN has a P/B of 2.07.

These are just a few of the metrics contributing to AHCO's Value grade of A and HLN's Value grade of C.

AHCO has seen stronger estimate revision activity and sports more attractive valuation metrics than HLN, so it seems like value investors will conclude that AHCO is the superior option right now.


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AdaptHealth Corp. (AHCO) - free report >>

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