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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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Integer has a Zacks Rank of #1 (Strong Buy), while Edwards Lifesciences has a Zacks Rank of #4 (Sell). 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ITGR currently has a forward P/E ratio of 21.23, while EW has a forward P/E of 30.69. We also note that ITGR has a PEG ratio of 1.34. 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 4.64.

Another notable valuation metric for ITGR is its P/B ratio of 2.22. 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 6.93.

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

ITGR 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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