AMOT vs. WTS: Which Stock Should Value Investors Buy Now?
AMOT vs. WTS: Which Stock Is the Better Value Option?
Investors with an interest in Instruments - Control stocks have likely encountered both Allied Motion Technologies (AMOT) and Watts Water (WTS). 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.
Allied Motion Technologies and Watts Water are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
AMOT currently has a forward P/E ratio of 23.70, while WTS has a forward P/E of 31.97. We also note that AMOT has a PEG ratio of 2.37. 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. WTS currently has a PEG ratio of 4.
Another notable valuation metric for AMOT is its P/B ratio of 3.21. 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, WTS has a P/B of 4.99.
These are just a few of the metrics contributing to AMOT's Value grade of B and WTS's 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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Allied Motion Technologies, Inc. (AMOT): Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report
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