AMOT or TRNS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Instruments - Control sector might want to consider either Allied Motion Technologies (AMOT) or Transcat, Inc. (TRNS). 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 Transcat, Inc. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMOT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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 16.74, while TRNS has a forward P/E of 50.40. We also note that AMOT has a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRNS currently has a PEG ratio of 6.30.
Another notable valuation metric for AMOT is its P/B ratio of 3.14. 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, TRNS has a P/B of 7.04.
These are just a few of the metrics contributing to AMOT's Value grade of B and TRNS's Value grade of F.
AMOT stands above TRNS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMOT is the superior value option right now.
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Allied Motion Technologies, Inc. (AMOT) : Free Stock Analysis Report
Transcat, Inc. (TRNS) : Free Stock Analysis Report
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