AMADY or VLTO: Which Is the Better Value Stock Right Now?

Zacks
13 Nov 2024

Investors looking for stocks in the Technology Services sector might want to consider either Amadeus IT Group SA Unsponsored ADR (AMADY) or Veralto (VLTO). 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Amadeus IT Group SA Unsponsored ADR and Veralto 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. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

AMADY currently has a forward P/E ratio of 23.44, while VLTO has a forward P/E of 29.97. We also note that AMADY has a PEG ratio of 2.72. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VLTO currently has a PEG ratio of 4.31.

Another notable valuation metric for AMADY is its P/B ratio of 6.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VLTO has a P/B of 13.17.

Based on these metrics and many more, AMADY holds a Value grade of B, while VLTO has a Value grade of C.

Both AMADY and VLTO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AMADY is the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amadeus IT Group SA Unsponsored ADR (AMADY) : Free Stock Analysis Report

Veralto Corporation (VLTO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10