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Integra LifeSciences Holdings Corporation (IART) - free report >>
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Integra LifeSciences Holdings Corporation (IART) - free report >>
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IART vs. ABMD: Which Stock Is the Better Value Option?
Investors interested in Medical - Instruments stocks are likely familiar with Integra LifeSciences (IART - Free Report) and Abiomed . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Integra LifeSciences has a Zacks Rank of #2 (Buy), while Abiomed 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 IART has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
IART currently has a forward P/E ratio of 23.10, while ABMD has a forward P/E of 63.89. We also note that IART has a PEG ratio of 2.56. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ABMD currently has a PEG ratio of 3.12.
Another notable valuation metric for IART is its P/B ratio of 3.03. 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, ABMD has a P/B of 11.32.
These metrics, and several others, help IART earn a Value grade of B, while ABMD has been given a Value grade of D.
IART has seen stronger estimate revision activity and sports more attractive valuation metrics than ABMD, so it seems like value investors will conclude that IART is the superior option right now.