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ITRI or AME: Which Is the Better Value Stock Right Now?
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Investors with an interest in Electronics - Testing Equipment stocks have likely encountered both Itron (ITRI - Free Report) and Ametek (AME - 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.
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, Itron has a Zacks Rank of #2 (Buy), while Ametek has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ITRI is likely seeing its earnings outlook improve to a greater extent. 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.
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.
ITRI currently has a forward P/E ratio of 22.63, while AME has a forward P/E of 29.01. We also note that ITRI has a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AME currently has a PEG ratio of 3.22.
Another notable valuation metric for ITRI is its P/B ratio of 3.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AME has a P/B of 4.78.
Based on these metrics and many more, ITRI holds a Value grade of B, while AME has a Value grade of D.
ITRI 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 ITRI is likely the superior value option right now.
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ITRI or AME: Which Is the Better Value Stock Right Now?
Investors with an interest in Electronics - Testing Equipment stocks have likely encountered both Itron (ITRI - Free Report) and Ametek (AME - 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.
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, Itron has a Zacks Rank of #2 (Buy), while Ametek has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ITRI is likely seeing its earnings outlook improve to a greater extent. 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.
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.
ITRI currently has a forward P/E ratio of 22.63, while AME has a forward P/E of 29.01. We also note that ITRI has a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AME currently has a PEG ratio of 3.22.
Another notable valuation metric for ITRI is its P/B ratio of 3.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AME has a P/B of 4.78.
Based on these metrics and many more, ITRI holds a Value grade of B, while AME has a Value grade of D.
ITRI 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 ITRI is likely the superior value option right now.