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

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Investors with an interest in Medical - Instruments stocks have likely encountered both Integer (ITGR - Free Report) and Penumbra (PEN - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Integer and Penumbra are sporting Zacks Ranks of #2 (Buy) and #5 (Strong 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 ITGR has an improving earnings outlook. However, value investors will care about much more than just this.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ITGR currently has a forward P/E ratio of 24.18, while PEN has a forward P/E of 75.27. We also note that ITGR has a PEG ratio of 1.87. 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. PEN currently has a PEG ratio of 2.22.

Another notable valuation metric for ITGR is its P/B ratio of 2.77. 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, PEN has a P/B of 6.52.

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

ITGR stands above PEN 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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Penumbra, Inc. (PEN) - free report >>

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