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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 is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Integer and Edwards Lifesciences are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ITGR has an improving earnings outlook. 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.

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 18.98, while EW has a forward P/E of 26.99. We also note that ITGR has a PEG ratio of 1.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EW currently has a PEG ratio of 3.78.

Another notable valuation metric for ITGR is its P/B ratio of 1.99. 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, EW has a P/B of 6.10.

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

ITGR stands above EW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITGR is the superior value option right now.


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