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AMOT or WTS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Instruments - Control sector have probably already heard of 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.
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.
Allied Motion Technologies and Watts Water are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
AMOT currently has a forward P/E ratio of 25.43, while WTS has a forward P/E of 31.81. We also note that AMOT has a PEG ratio of 2.54. 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 3.98.
Another notable valuation metric for AMOT is its P/B ratio of 2.91. 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, WTS has a P/B of 5.06.
These metrics, and several others, help AMOT earn a Value grade of B, while WTS has been given 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 interested in stocks from the Instruments - Control sector have probably already heard of 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.
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.
Allied Motion Technologies and Watts Water are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
AMOT currently has a forward P/E ratio of 25.43, while WTS has a forward P/E of 31.81. We also note that AMOT has a PEG ratio of 2.54. 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 3.98.
Another notable valuation metric for AMOT is its P/B ratio of 2.91. 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, WTS has a P/B of 5.06.
These metrics, and several others, help AMOT earn a Value grade of B, while WTS has been given 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.