Investors interested in Medical Info Systems stocks are likely familiar with Definitive Healthcare Corp. (DH) and Privia Health (PRVA). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Definitive Healthcare Corp. and Privia Health are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that DH likely has seen a stronger improvement to its earnings outlook than PRVA has recently. But this is only part of the picture for value investors.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

DH currently has a forward P/E ratio of 12.82, while PRVA has a forward P/E of 74.67. We also note that DH has a PEG ratio of 1.40. 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. PRVA currently has a PEG ratio of 2.84.

Another notable valuation metric for DH is its P/B ratio of 0.66. 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, PRVA has a P/B of 3.79.

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

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

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