We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
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.
ACM vs. ALTR: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Engineering - R and D Services stocks have likely encountered both Aecom Technology (ACM - Free Report) and Altair Engineering (ALTR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Aecom Technology has a Zacks Rank of #2 (Buy), while Altair Engineering has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ACM is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
ACM currently has a forward P/E ratio of 20.76, while ALTR has a forward P/E of 73.99. We also note that ACM has a PEG ratio of 1.80. 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. ALTR currently has a PEG ratio of 6.17.
Another notable valuation metric for ACM is its P/B ratio of 5.99. 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, ALTR has a P/B of 11.21.
Based on these metrics and many more, ACM holds a Value grade of B, while ALTR has a Value grade of F.
ACM sticks out from ALTR in both our Zacks Rank and Style Scores models, so value investors will likely feel that ACM is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ACM vs. ALTR: Which Stock Should Value Investors Buy Now?
Investors with an interest in Engineering - R and D Services stocks have likely encountered both Aecom Technology (ACM - Free Report) and Altair Engineering (ALTR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Aecom Technology has a Zacks Rank of #2 (Buy), while Altair Engineering has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ACM is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
ACM currently has a forward P/E ratio of 20.76, while ALTR has a forward P/E of 73.99. We also note that ACM has a PEG ratio of 1.80. 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. ALTR currently has a PEG ratio of 6.17.
Another notable valuation metric for ACM is its P/B ratio of 5.99. 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, ALTR has a P/B of 11.21.
Based on these metrics and many more, ACM holds a Value grade of B, while ALTR has a Value grade of F.
ACM sticks out from ALTR in both our Zacks Rank and Style Scores models, so value investors will likely feel that ACM is the better option right now.