We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ITRI vs. AME: Which Stock Is the Better Value Option?
Read MoreHide Full Article
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 stocks presents investors with the better value opportunity right now? Let's 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.
Right now, Itron is sporting a Zacks Rank of #1 (Strong Buy), while Ametek has a Zacks Rank of #2 (Buy). This means that ITRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
ITRI currently has a forward P/E ratio of 23.33, while AME has a forward P/E of 24.53. We also note that ITRI has a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AME currently has a PEG ratio of 2.56.
Another notable valuation metric for ITRI is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AME has a P/B of 4.59.
Based on these metrics and many more, ITRI holds a Value grade of B, while AME has a Value grade of C.
ITRI stands above AME thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITRI is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ITRI vs. AME: Which Stock Is the Better Value Option?
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 stocks presents investors with the better value opportunity right now? Let's 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.
Right now, Itron is sporting a Zacks Rank of #1 (Strong Buy), while Ametek has a Zacks Rank of #2 (Buy). This means that ITRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
ITRI currently has a forward P/E ratio of 23.33, while AME has a forward P/E of 24.53. We also note that ITRI has a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AME currently has a PEG ratio of 2.56.
Another notable valuation metric for ITRI is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AME has a P/B of 4.59.
Based on these metrics and many more, ITRI holds a Value grade of B, while AME has a Value grade of C.
ITRI stands above AME thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ITRI is the superior value option right now.