Yahoo Finance THRN vs. HQY: Which Stock Should Value Investors Buy Now?
Investors interested in Medical Services stocks are likely familiar with Thorne Healthtech, Inc. (THRN) and HealthEquity (HQY). 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.
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.
Currently, both Thorne Healthtech, Inc. and HealthEquity are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.
THRN currently has a forward P/E ratio of 24.91, while HQY has a forward P/E of 34.99. We also note that THRN has a PEG ratio of 0.61. 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. HQY currently has a PEG ratio of 1.59.
Another notable valuation metric for THRN is its P/B ratio of 2.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HQY has a P/B of 2.99.
Based on these metrics and many more, THRN holds a Value grade of B, while HQY has a Value grade of C.
Both THRN and HQY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that THRN is the superior value option right now.
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Thorne Healthtech, Inc. (THRN) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
