AMADY vs. TT: Which Stock Should Value Investors Buy Now?

TT AMADY

Investors interested in stocks from the Technology Services sector have probably already heard of Amadeus IT Group SA Unsponsored ADR (AMADY - Free Report) and Trane Technologies (TT - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Amadeus IT Group SA Unsponsored ADR and Trane Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMADY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

AMADY currently has a forward P/E ratio of 22.96, while TT has a forward P/E of 25.28. We also note that AMADY has a PEG ratio of 1.34. 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. TT currently has a PEG ratio of 1.96.

Another notable valuation metric for AMADY is its P/B ratio of 6.63. 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, TT has a P/B of 8.56.

These are just a few of the metrics contributing to AMADY's Value grade of B and TT's Value grade of C.

AMADY has seen stronger estimate revision activity and sports more attractive valuation metrics than TT, so it seems like value investors will conclude that AMADY is the superior option right now.

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