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

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Integer has a Zacks Rank of #2 (Buy), while Penumbra has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ITGR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ITGR currently has a forward P/E ratio of 19.24, while PEN has a forward P/E of 65.59. We also note that ITGR has a PEG ratio of 1.05. 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 2.17.

Another notable valuation metric for ITGR is its P/B ratio of 2.64. 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, PEN has a P/B of 7.79.

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

ITGR stands above PEN 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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Penumbra, Inc. (PEN) - free report >>

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