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ATI vs. EH: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Aerospace - Defense Equipment sector might want to consider either ATI (ATI - Free Report) or EHang Holdings Limited Unsponsored ADR (EH - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
ATI and EHang Holdings Limited Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ATI 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ATI currently has a forward P/E ratio of 27.39, while EH has a forward P/E of 1,944.00. We also note that ATI has a PEG ratio of 1.14. 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. EH currently has a PEG ratio of 58.64.
Another notable valuation metric for ATI is its P/B ratio of 6.21. 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, EH has a P/B of 9.91.
These are just a few of the metrics contributing to ATI's Value grade of B and EH's Value grade of F.
ATI has seen stronger estimate revision activity and sports more attractive valuation metrics than EH, so it seems like value investors will conclude that ATI is the superior option right now.
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ATI vs. EH: Which Stock Is the Better Value Option?
Investors looking for stocks in the Aerospace - Defense Equipment sector might want to consider either ATI (ATI - Free Report) or EHang Holdings Limited Unsponsored ADR (EH - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
ATI and EHang Holdings Limited Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ATI 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ATI currently has a forward P/E ratio of 27.39, while EH has a forward P/E of 1,944.00. We also note that ATI has a PEG ratio of 1.14. 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. EH currently has a PEG ratio of 58.64.
Another notable valuation metric for ATI is its P/B ratio of 6.21. 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, EH has a P/B of 9.91.
These are just a few of the metrics contributing to ATI's Value grade of B and EH's Value grade of F.
ATI has seen stronger estimate revision activity and sports more attractive valuation metrics than EH, so it seems like value investors will conclude that ATI is the superior option right now.