Evaluating HQY and MEDP Stocks for Investment Potential

HQY vs. MEDP: Which Looks Like the Better Value Right Now?

If you’re looking at Medical Services stocks, HealthEquity (HQY) and Medpace (MEDP) probably sit near the top of your list. Both are well-known names, but the question for a value-focused investor is simple: which one looks more compelling today? Below, we walk through the same core yardsticks many investors lean on—Zacks Rank, P/E, PEG, and P/B—and see how each company stacks up.

How Zacks Rank and Value Grades Help

The Zacks Rank system is designed to highlight stocks with positive trends in earnings estimate revisions. Pair that with a solid grade in the Value category, and you get a quick read on names that might be priced attractively relative to their fundamentals. In short, Zacks Rank leans on earnings momentum, while the Value grade sums up key valuation traits.

Where HQY and MEDP Stand Today

Right now, HealthEquity holds a Zacks Rank of #2, which signals a Buy. Medpace sits at #3, a Hold. That gap reflects stronger earnings estimate trends for HQY at the moment and, by extension, gives HQY a bit more near-term support in the rankings.

Valuation at a Glance

Value investors often start with a few familiar lenses. The Price-to-Earnings (P/E) ratio frames a stock’s price against expected earnings, and the PEG ratio adds a growth layer to that picture. Neither metric tells the whole story by itself, but together they can help you compare price, earnings power, and growth expectations.

Side-by-Side: P/E and PEG

On forward P/E, HQY stands at 24.80. MEDP’s forward P/E is higher, at 29.12. Looking at growth-adjusted valuation, HealthEquity’s PEG ratio is 0.88, while Medpace’s PEG is 1.76. Investors often read the PEG ratio alongside the P/E ratio to see how a stock’s expected growth lines up with the price being paid.

Looking at Price-to-Book

The Price-to-Book (P/B) ratio compares a company’s market value with its book value—assets minus liabilities. It’s another way to think about what investors are paying relative to the company’s net assets. On this front, HealthEquity’s P/B ratio is 3.09, whereas Medpace’s is much higher at 13.78. For value-minded investors, that spread is hard to ignore.

Value Grades: What They Signal

Roll those measures together, and the Value grades diverge. HealthEquity earns a B in the Value category. Medpace comes in at a C. The difference underscores HQY’s comparatively stronger valuation profile across the metrics highlighted above.

Bottom Line

Taking the earnings outlook captured by the Zacks Rank and the valuation snapshot from P/E, PEG, and P/B, HealthEquity stands out as the stronger value pick versus Medpace right now. If you’re tracking these two, the current numbers make a straightforward case for HQY as the better value choice at this point.

Frequently Asked Questions

Which stock has the higher Zacks Rank today?

HealthEquity (HQY) holds a Zacks Rank of #2 (Buy), while Medpace (MEDP) has a Zacks Rank of #3 (Hold).

How do the forward P/E ratios compare between HQY and MEDP?

HQY’s forward P/E is 24.80, which is lower than MEDP’s 29.12. That shows HQY is priced below MEDP on expected earnings.

What do the PEG ratios say about growth-adjusted valuation?

HealthEquity’s PEG ratio is 0.88 compared with Medpace’s 1.76. Investors often view PEG alongside P/E to frame price relative to growth expectations.

Why does the P/B ratio matter here?

The P/B ratio compares market value to book value. HQY’s P/B is 3.09, while MEDP’s is 13.78, highlighting a notable difference in how the market values each company relative to net assets.

Based on these metrics, which looks like the better value pick?

Given the Zacks Rank, P/E, PEG, and P/B comparisons—as well as the Value grades—HealthEquity (HQY) appears to be the stronger value choice over Medpace (MEDP) at this time.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

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