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Integra LifeSciences Holdings Corporation (IART) - free report >>
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Integra LifeSciences Holdings Corporation (IART) - free report >>
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IART vs. TCMD: Which Stock Is the Better Value Option?
Investors interested in Medical - Instruments stocks are likely familiar with Integra LifeSciences (IART - Free Report) and Tactile Systems Technology (TCMD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Integra LifeSciences and Tactile Systems Technology have a Zacks Rank of # 2 (Buy) right now. 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 only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
IART currently has a forward P/E ratio of 20.36, while TCMD has a forward P/E of 72.15. We also note that IART has a PEG ratio of 1.72. 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. TCMD currently has a PEG ratio of 5.77.
Another notable valuation metric for IART is its P/B ratio of 3.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TCMD has a P/B of 8.53.
Based on these metrics and many more, IART holds a Value grade of B, while TCMD has a Value grade of D.
Both IART and TCMD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IART is the superior value option right now.