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ITGR vs. EW: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Medical - Instruments sector might want to consider either Integer (ITGR - Free Report) or Edwards Lifesciences (EW - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Integer is sporting a Zacks Rank of #2 (Buy), while Edwards Lifesciences has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ITGR likely has seen a stronger improvement to its earnings outlook than EW has recently. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ITGR currently has a forward P/E ratio of 19.11, while EW has a forward P/E of 34.93. We also note that ITGR has a PEG ratio of 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EW currently has a PEG ratio of 5.05.

Another notable valuation metric for ITGR is its P/B ratio of 1.86. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EW has a P/B of 8.92.

These metrics, and several others, help ITGR earn a Value grade of B, while EW has been given a Value grade of D.

ITGR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ITGR is likely the superior value option right now.


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