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

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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.

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.

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. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

ITGR currently has a forward P/E ratio of 19.71, while EW has a forward P/E of 26.20. We also note that ITGR has a PEG ratio of 1.25. 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 3.67.

Another notable valuation metric for ITGR is its P/B ratio of 2.02. 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, EW has a P/B of 5.93.

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

ITGR sticks out from EW in both our Zacks Rank and Style Scores models, so value investors will likely feel that ITGR is the better option right now.


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Edwards Lifesciences Corporation (EW) - free report >>

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