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ACM vs. ALTR: Which Stock Should Value Investors Buy Now?
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Investors interested in Engineering - R and D Services stocks are likely familiar with Aecom Technology (ACM - Free Report) and Altair Engineering (ALTR - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Aecom Technology is sporting a Zacks Rank of #2 (Buy), while Altair Engineering has a Zacks Rank of #3 (Hold). This means that ACM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
ACM currently has a forward P/E ratio of 20.78, while ALTR has a forward P/E of 68.42. We also note that ACM has a PEG ratio of 1.40. 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. ALTR currently has a PEG ratio of 5.70.
Another notable valuation metric for ACM is its P/B ratio of 5.27. 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, ALTR has a P/B of 9.25.
Based on these metrics and many more, ACM holds a Value grade of B, while ALTR has a Value grade of F.
ACM 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 ACM is likely the superior value option right now.
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ACM vs. ALTR: Which Stock Should Value Investors Buy Now?
Investors interested in Engineering - R and D Services stocks are likely familiar with Aecom Technology (ACM - Free Report) and Altair Engineering (ALTR - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Aecom Technology is sporting a Zacks Rank of #2 (Buy), while Altair Engineering has a Zacks Rank of #3 (Hold). This means that ACM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
ACM currently has a forward P/E ratio of 20.78, while ALTR has a forward P/E of 68.42. We also note that ACM has a PEG ratio of 1.40. 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. ALTR currently has a PEG ratio of 5.70.
Another notable valuation metric for ACM is its P/B ratio of 5.27. 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, ALTR has a P/B of 9.25.
Based on these metrics and many more, ACM holds a Value grade of B, while ALTR has a Value grade of F.
ACM 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 ACM is likely the superior value option right now.