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ITRI vs. AME: Which Stock Is the Better Value Option? September 02, 2024
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Investors looking for stocks in the Electronics - Testing Equipment sector might want to consider either Itron (ITRI - Free Report) or Ametek (AME - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Itron and Ametek are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ITRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
ITRI currently has a forward P/E ratio of 22.50, while AME has a forward P/E of 25.27. We also note that ITRI has a PEG ratio of 0.87. 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 2.81.
Another notable valuation metric for ITRI is its P/B ratio of 3.65. 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, AME has a P/B of 4.28.
Based on these metrics and many more, ITRI holds a Value grade of B, while AME has a Value grade of D.
ITRI sticks out from AME in both our Zacks Rank and Style Scores models, so value investors will likely feel that ITRI is the better option right now.
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Investors looking for stocks in the Electronics - Testing Equipment sector might want to consider either Itron (ITRI - Free Report) or Ametek (AME - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Itron and Ametek are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ITRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
ITRI currently has a forward P/E ratio of 22.50, while AME has a forward P/E of 25.27. We also note that ITRI has a PEG ratio of 0.87. 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 2.81.
Another notable valuation metric for ITRI is its P/B ratio of 3.65. 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, AME has a P/B of 4.28.
Based on these metrics and many more, ITRI holds a Value grade of B, while AME has a Value grade of D.
ITRI sticks out from AME in both our Zacks Rank and Style Scores models, so value investors will likely feel that ITRI is the better option right now.