Back to top

Image: Bigstock

ITGR vs. GMED: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors looking for stocks in the Medical - Instruments sector might want to consider either Integer (ITGR - Free Report) or Globus Medical (GMED - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Right now, Integer is sporting a Zacks Rank of #2 (Buy), while Globus Medical has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ITGR has an improving earnings outlook. But this is just one piece of the puzzle 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 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.

ITGR currently has a forward P/E ratio of 20.06, while GMED has a forward P/E of 37.16. We also note that ITGR has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GMED currently has a PEG ratio of 3.03.

Another notable valuation metric for ITGR is its P/B ratio of 2.35. 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, GMED has a P/B of 5.35.

These are just a few of the metrics contributing to ITGR's Value grade of A and GMED's Value grade of D.

ITGR stands above GMED thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITGR is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Globus Medical, Inc. (GMED) - free report >>

Integer Holdings Corporation (ITGR) - free report >>