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ITGR vs. PEN: 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 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Integer has a Zacks Rank of #2 (Buy), while Penumbra has a Zacks Rank of #3 (Hold). 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. But this is just one factor that value investors are interested in.

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.

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 16.98, while PEN has a forward P/E of 61.91. We also note that ITGR has a PEG ratio of 0.85. 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. PEN currently has a PEG ratio of 2.05.

Another notable valuation metric for ITGR is its P/B ratio of 2.22. 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 7.35.

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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