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AIMC vs. PH: Which Stock Is the Better Value Option?
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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Altra Industrial Motion and Parker-Hannifin (PH - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Altra Industrial Motion is sporting a Zacks Rank of #2 (Buy), while Parker-Hannifin 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 AIMC 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.
AIMC currently has a forward P/E ratio of 18.51, while PH has a forward P/E of 20.53. We also note that AIMC has a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PH currently has a PEG ratio of 1.74.
Another notable valuation metric for AIMC is its P/B ratio of 1.46. 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, PH has a P/B of 4.55.
Based on these metrics and many more, AIMC holds a Value grade of B, while PH has a Value grade of C.
AIMC stands above PH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AIMC is the superior value option right now.
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AIMC vs. PH: Which Stock Is the Better Value Option?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Altra Industrial Motion and Parker-Hannifin (PH - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Altra Industrial Motion is sporting a Zacks Rank of #2 (Buy), while Parker-Hannifin 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 AIMC 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.
AIMC currently has a forward P/E ratio of 18.51, while PH has a forward P/E of 20.53. We also note that AIMC has a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PH currently has a PEG ratio of 1.74.
Another notable valuation metric for AIMC is its P/B ratio of 1.46. 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, PH has a P/B of 4.55.
Based on these metrics and many more, AIMC holds a Value grade of B, while PH has a Value grade of C.
AIMC stands above PH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AIMC is the superior value option right now.