AMADY or TT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either Amadeus IT Group SA Unsponsored ADR (AMADY) or Trane Technologies (TT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Amadeus IT Group SA Unsponsored ADR has a Zacks Rank of #2 (Buy), while Trane Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AMADY likely has seen a stronger improvement to its earnings outlook than TT has recently. 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.
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.
AMADY currently has a forward P/E ratio of 21.97, while TT has a forward P/E of 27. We also note that AMADY has a PEG ratio of 1.28. 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. TT currently has a PEG ratio of 2.15.
Another notable valuation metric for AMADY is its P/B ratio of 6.35. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TT has a P/B of 8.82.
These metrics, and several others, help AMADY earn a Value grade of B, while TT has been given a Value grade of C.
AMADY 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 AMADY is likely the superior value option right now.
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Amadeus IT Group SA Unsponsored ADR (AMADY) : Free Stock Analysis Report
Trane Technologies plc (TT) : Free Stock Analysis Report
