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AME vs. TER: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Electronics - Testing Equipment stocks have likely encountered both Ametek (AME - Free Report) and Teradyne (TER - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Ametek has a Zacks Rank of #2 (Buy), while Teradyne 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 AME has an improving earnings outlook. But this is only part of the picture for value investors.
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.
AME currently has a forward P/E ratio of 24.61, while TER has a forward P/E of 32.37. We also note that AME has a PEG ratio of 2.66. 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. TER currently has a PEG ratio of 5.40.
Another notable valuation metric for AME is its P/B ratio of 4.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TER has a P/B of 5.79.
These are just a few of the metrics contributing to AME's Value grade of B and TER's Value grade of C.
AME 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 AME is likely the superior value option right now.
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AME vs. TER: Which Stock Should Value Investors Buy Now?
Investors with an interest in Electronics - Testing Equipment stocks have likely encountered both Ametek (AME - Free Report) and Teradyne (TER - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Ametek has a Zacks Rank of #2 (Buy), while Teradyne 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 AME has an improving earnings outlook. But this is only part of the picture for value investors.
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.
AME currently has a forward P/E ratio of 24.61, while TER has a forward P/E of 32.37. We also note that AME has a PEG ratio of 2.66. 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. TER currently has a PEG ratio of 5.40.
Another notable valuation metric for AME is its P/B ratio of 4.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TER has a P/B of 5.79.
These are just a few of the metrics contributing to AME's Value grade of B and TER's Value grade of C.
AME 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 AME is likely the superior value option right now.