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ITGR or LMNX: Which Is the Better Value Stock Right Now?

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Investors with an interest in Medical - Instruments stocks have likely encountered both Integer (ITGR - Free Report) and Luminex . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Right now, Integer is sporting a Zacks Rank of #1 (Strong Buy), while Luminex has a Zacks Rank of #4 (Sell). This means that ITGR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 19.28, while LMNX has a forward P/E of 48.09. We also note that ITGR has a PEG ratio of 1.29. 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. LMNX currently has a PEG ratio of 3.50.

Another notable valuation metric for ITGR is its P/B ratio of 2.40. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LMNX has a P/B of 2.57.

Based on these metrics and many more, ITGR holds a Value grade of B, while LMNX has a Value grade of C.

ITGR has seen stronger estimate revision activity and sports more attractive valuation metrics than LMNX, so it seems like value investors will conclude that ITGR is the superior option right now.


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