Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors with an interest in Medical - Instruments stocks have likely encountered both Integer (ITGR - Free Report) and SONOVA HOLDING (SONVY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Integer and SONOVA HOLDING are both sporting a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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 15.96, while SONVY has a forward P/E of 21.37. We also note that ITGR has a PEG ratio of 0.80. 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. SONVY currently has a PEG ratio of 3.02.

Another notable valuation metric for ITGR is its P/B ratio of 2.09. 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, SONVY has a P/B of 5.45.

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

Both ITGR and SONVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ITGR is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Integer Holdings Corporation (ITGR) - free report >>

SONOVA HOLDING (SONVY) - free report >>

Published in