ITGR vs. EW: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical - Instruments sector might want to consider either Integer (ITGR) or Edwards Lifesciences (EW). 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Integer and Edwards Lifesciences are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
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.
ITGR currently has a forward P/E ratio of 17.87, while EW has a forward P/E of 27.92. We also note that ITGR has a PEG ratio of 1.47. 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. EW currently has a PEG ratio of 3.84.
Another notable valuation metric for ITGR is its P/B ratio of 1.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EW has a P/B of 6.71.
These metrics, and several others, help ITGR earn a Value grade of B, while EW has been given a Value grade of D.
Both ITGR and EW 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
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
