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Amadeus IT Group SA Unsponsored ADR (AMADY) - free report >>
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Amadeus IT Group SA Unsponsored ADR (AMADY) - free report >>
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AMADY or VLTO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either Amadeus IT Group SA Unsponsored ADR (AMADY - Free Report) or Veralto (VLTO - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Amadeus IT Group SA Unsponsored ADR and Veralto are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AMADY currently has a forward P/E ratio of 23.44, while VLTO has a forward P/E of 29.97. We also note that AMADY has a PEG ratio of 2.72. 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. VLTO currently has a PEG ratio of 4.31.
Another notable valuation metric for AMADY is its P/B ratio of 6.76. 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, VLTO has a P/B of 13.17.
Based on these metrics and many more, AMADY holds a Value grade of B, while VLTO has a Value grade of C.
Both AMADY and VLTO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AMADY is the superior value option right now.