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RTIX or INGN: Which Is the Better Value Stock Right Now?

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Investors interested in Medical - Instruments stocks are likely familiar with RTI Surgical and Inogen (INGN - Free Report) . 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.

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 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.

Currently, both RTI Surgical and Inogen are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

RTIX currently has a forward P/E ratio of 42.27, while INGN has a forward P/E of 121. We also note that RTIX has a PEG ratio of 2.82. 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. INGN currently has a PEG ratio of 5.38.

Another notable valuation metric for RTIX is its P/B ratio of 1.67. 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, INGN has a P/B of 18.41.

These are just a few of the metrics contributing to RTIX's Value grade of B and INGN's Value grade of F.

Both RTIX and INGN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RTIX is the superior value option right now.


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