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

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Investors interested in Medical - Instruments stocks are likely familiar with Integer (ITGR - Free Report) and Edwards Lifesciences (EW - 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.

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.

Integer and Edwards Lifesciences are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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 factor that value investors are interested in.

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 19.63, while EW has a forward P/E of 29.98. We also note that ITGR has a PEG ratio of 1.62. 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. EW currently has a PEG ratio of 4.12.

Another notable valuation metric for ITGR is its P/B ratio of 1.96. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EW has a P/B of 7.20.

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

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


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