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CON vs. MEDP: Which Stock Is the Better Value Option?

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Investors with an interest in Medical Services stocks have likely encountered both Concentra Group (CON - Free Report) and Medpace (MEDP - Free Report) . 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 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.

Concentra Group has a Zacks Rank of #2 (Buy), while Medpace has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CON 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

CON currently has a forward P/E ratio of 17.37, while MEDP has a forward P/E of 26.73. We also note that CON has a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MEDP currently has a PEG ratio of 3.63.

Another notable valuation metric for CON is its P/B ratio of 10.37. 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, MEDP has a P/B of 12.37.

These are just a few of the metrics contributing to CON's Value grade of B and MEDP's Value grade of C.

CON sticks out from MEDP in both our Zacks Rank and Style Scores models, so value investors will likely feel that CON is the better option right now.


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Medpace Holdings, Inc. (MEDP) - free report >>

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