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AMOT or WTS: Which Is the Better Value Stock Right Now?
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Investors with an interest in Instruments - Control stocks have likely encountered both Allied Motion Technologies and Watts Water (WTS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Allied Motion Technologies and Watts Water have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AMOT currently has a forward P/E ratio of 23.83, while WTS has a forward P/E of 33.48. We also note that AMOT has a PEG ratio of 2.38. 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. WTS currently has a PEG ratio of 4.18.
Another notable valuation metric for AMOT is its P/B ratio of 3.04. 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, WTS has a P/B of 4.93.
Based on these metrics and many more, AMOT holds a Value grade of B, while WTS has a Value grade of D.
Both AMOT and WTS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AMOT is the superior value option right now.
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AMOT or WTS: Which Is the Better Value Stock Right Now?
Investors with an interest in Instruments - Control stocks have likely encountered both Allied Motion Technologies and Watts Water (WTS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Allied Motion Technologies and Watts Water have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AMOT currently has a forward P/E ratio of 23.83, while WTS has a forward P/E of 33.48. We also note that AMOT has a PEG ratio of 2.38. 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. WTS currently has a PEG ratio of 4.18.
Another notable valuation metric for AMOT is its P/B ratio of 3.04. 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, WTS has a P/B of 4.93.
Based on these metrics and many more, AMOT holds a Value grade of B, while WTS has a Value grade of D.
Both AMOT and WTS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AMOT is the superior value option right now.