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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. ABMD: Which Stock Is the Better Value Option?
Investors interested in Medical - Instruments stocks are likely familiar with Integra LifeSciences (IART - Free Report) and 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Integra LifeSciences and Abiomed are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IART has an improving earnings outlook. 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.
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.
IART currently has a forward P/E ratio of 12.84, while ABMD has a forward P/E of 31.24. We also note that IART has a PEG ratio of 1.08. 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. ABMD currently has a PEG ratio of 1.49.
Another notable valuation metric for IART is its P/B ratio of 2.35. 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, ABMD has a P/B of 6.32.
These are just a few of the metrics contributing to IART's Value grade of B and ABMD's Value grade of D.
IART sticks out from ABMD in both our Zacks Rank and Style Scores models, so value investors will likely feel that IART is the better option right now.