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AMOT or WTS: Which Is the Better Value Stock Right Now?
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Investors interested in Instruments - Control stocks are likely familiar with Allied Motion Technologies and Watts Water (WTS - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Allied Motion Technologies and Watts Water are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
AMOT currently has a forward P/E ratio of 22.05, while WTS has a forward P/E of 32.61. We also note that AMOT has a PEG ratio of 2.20. 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. WTS currently has a PEG ratio of 4.08.
Another notable valuation metric for AMOT is its P/B ratio of 2.99. 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, WTS has a P/B of 5.19.
Based on these metrics and many more, AMOT holds a Value grade of B, while WTS has a Value grade of D.
Both AMOT and WTS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AMOT is the superior value option right now.
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AMOT or WTS: Which Is the Better Value Stock Right Now?
Investors interested in Instruments - Control stocks are likely familiar with Allied Motion Technologies and Watts Water (WTS - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Allied Motion Technologies and Watts Water are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
AMOT currently has a forward P/E ratio of 22.05, while WTS has a forward P/E of 32.61. We also note that AMOT has a PEG ratio of 2.20. 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. WTS currently has a PEG ratio of 4.08.
Another notable valuation metric for AMOT is its P/B ratio of 2.99. 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, WTS has a P/B of 5.19.
Based on these metrics and many more, AMOT holds a Value grade of B, while WTS has a Value grade of D.
Both AMOT and WTS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AMOT is the superior value option right now.