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ITGR vs. ABMD: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Medical - Instruments sector might want to consider either Integer (ITGR - Free Report) or Abiomed . But which of these two stocks presents investors with the better value opportunity right now? 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.

Currently, both Integer and Abiomed are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ITGR currently has a forward P/E ratio of 20.40, while ABMD has a forward P/E of 118.54. We also note that ITGR has a PEG ratio of 1.36. 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. ABMD currently has a PEG ratio of 4.39.

Another notable valuation metric for ITGR is its P/B ratio of 2.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ABMD has a P/B of 26.62.

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

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


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