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FUTU or AMADY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Technology Services stocks have likely encountered both Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Amadeus IT Group SA Unsponsored ADR (AMADY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Futu Holdings Limited Sponsored ADR has a Zacks Rank of #2 (Buy), while Amadeus IT Group SA Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FUTU has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

FUTU currently has a forward P/E ratio of 22.14, while AMADY has a forward P/E of 23.58. We also note that FUTU has a PEG ratio of 1.08. 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. AMADY currently has a PEG ratio of 3.03.

Another notable valuation metric for FUTU is its P/B ratio of 6.23. 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, AMADY has a P/B of 6.56.

These metrics, and several others, help FUTU earn a Value grade of B, while AMADY has been given a Value grade of C.

FUTU is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FUTU is likely the superior value option right now.


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

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