Back to top

Image: Bigstock

NVEE vs. AMADY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Technology Services stocks have likely encountered both NV5 Global (NVEE - Free Report) and Amadeus IT Group SA Unsponsored ADR (AMADY - 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.

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 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.

Both NV5 Global and Amadeus IT Group SA Unsponsored ADR have 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. But this is just one factor that value investors are interested in.

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.

NVEE currently has a forward P/E ratio of 12.23, while AMADY has a forward P/E of 22.66. We also note that NVEE has a PEG ratio of 2.32. 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. AMADY currently has a PEG ratio of 3.35.

Another notable valuation metric for NVEE is its P/B ratio of 1.25. 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, AMADY has a P/B of 6.37.

Based on these metrics and many more, NVEE holds a Value grade of B, while AMADY has a Value grade of C.

Both NVEE and AMADY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NVEE is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NV5 Global, Inc. (NVEE) - free report >>

Amadeus IT Group SA Unsponsored ADR (AMADY) - free report >>

Published in