IART vs. IDXX: Which Stock Is the Better Value Option?
Investors interested in Medical - Instruments stocks are likely familiar with Integra LifeSciences (IART) and Idexx Laboratories (IDXX). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Integra LifeSciences has a Zacks Rank of #2 (Buy), while Idexx Laboratories has a Zacks Rank of #3 (Hold) 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 just one factor that value investors are interested in.
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 12.07, while IDXX has a forward P/E of 43.67. We also note that IART has a PEG ratio of 1.53. 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. IDXX currently has a PEG ratio of 2.49.
Another notable valuation metric for IART is its P/B ratio of 1.83. 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, IDXX has a P/B of 32.50.
These metrics, and several others, help IART earn a Value grade of A, while IDXX has been given a Value grade of D.
IART is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IART is likely the superior value option right now.
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Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
