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ITGR vs. EW: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Medical - Instruments sector have probably already heard of Integer (ITGR - Free Report) and Edwards Lifesciences (EW - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Integer is sporting a Zacks Rank of #2 (Buy), while Edwards Lifesciences has a Zacks Rank of #3 (Hold). This means that ITGR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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 20.07, while EW has a forward P/E of 30.15. We also note that ITGR has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EW currently has a PEG ratio of 4.15.

Another notable valuation metric for ITGR is its P/B ratio of 2. 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, EW has a P/B of 7.25.

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

ITGR stands above EW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITGR is the superior value option right now.


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Edwards Lifesciences Corporation (EW) - free report >>

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