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

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Investors with an interest in Medical - Instruments stocks have likely encountered both Integer (ITGR - Free Report) and Penumbra (PEN - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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 #1 (Strong Buy), while Penumbra has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that ITGR likely has seen a stronger improvement to its earnings outlook than PEN has recently. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 19.17, while PEN has a forward P/E of 69.63. We also note that ITGR has a PEG ratio of 1.04. 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. PEN currently has a PEG ratio of 2.31.

Another notable valuation metric for ITGR is its P/B ratio of 2.63. 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, PEN has a P/B of 8.27.

Based on these metrics and many more, ITGR holds a Value grade of B, while PEN has a Value grade of D.

ITGR sticks out from PEN 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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Penumbra, Inc. (PEN) - free report >>

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