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IART vs. SONVY: Which Stock Is the Better Value Option?

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Investors interested in Medical - Instruments stocks are likely familiar with Integra LifeSciences (IART - Free Report) and SONOVA HOLDING (SONVY - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Integra LifeSciences and SONOVA HOLDING are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that IART likely has seen a stronger improvement to its earnings outlook than SONVY has recently. But this is just one piece of the puzzle for value investors.

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 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.

IART currently has a forward P/E ratio of 7.18, while SONVY has a forward P/E of 17.51. We also note that IART has a PEG ratio of 1.22. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONVY currently has a PEG ratio of 3.57.

Another notable valuation metric for IART is its P/B ratio of 1.31. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SONVY has a P/B of 4.38.

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

IART sticks out from SONVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that IART is the better option right now.

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