Investors interested in instruments – control stocks have probably encountered both Allied Motion Technologies (AMOT Free report) and Watts Water (WTS Free report). But which of these two companies is the best option for those looking for undervalued stocks? Let’s take a closer look.

There are many strategies for discovering value stocks, but we’ve found that combining a strong Zacks ranking with an impressive rating in the Value category of our style scoring system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our style scores highlight companies with specific characteristics.

Allied Motion Technologies and Watts Water both have Zacks Rank # 2 (Buy) at this time. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors need to be assured that these two companies have an improving earnings outlook. But that’s only part of the picture for value investors.

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

The Style Score Value takes into account a variety of key fundamental metrics including P / E Ratio, P / S Ratio, Earnings Yield, Cash Flow Per Share, and a number of other commonly used key metrics. by value investors.

AMOT currently has a forward P / E of 23.83, while WTS has a forward P / E of 33.48. We also note that AMOT has a PEG ratio of 2.38. This popular figure is similar to the widely used P / E ratio, but the PEG ratio also takes into account the expected growth rate of a company’s EPS. WTS currently has a PEG ratio of 4.18.

Another notable valuation metric for AMOT is its P / N ratio of 3.04. P / B is a method of comparing the market value of a stock to its book value, which is defined as total assets minus total liabilities. By comparison, WTS has a P / B of 4.93.

Based on these metrics and many others, AMOT has a value rating of B, while WTS has a value rating of D.

AMOT and WTS are impressive stocks with solid earnings prospects, but based on these valuation numbers, we believe AMOT is the top value option right now.


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