ITGR or GMED: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical - Instruments sector might want to consider either Integer (ITGR) or Globus Medical (GMED). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Integer and Globus Medical are holding a Zacks Rank of # 2 (Buy). 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 just one piece of the puzzle 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 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 20.65, while GMED has a forward P/E of 26.11. We also note that ITGR has a PEG ratio of 1.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GMED currently has a PEG ratio of 2.27.
Another notable valuation metric for ITGR is its P/B ratio of 2.01. 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, GMED has a P/B of 3.23.
These metrics, and several others, help ITGR earn a Value grade of B, while GMED has been given a Value grade of C.
Both ITGR and GMED are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ITGR is the superior value option right now.
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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
Globus Medical, Inc. (GMED) : Free Stock Analysis Report
