AMADY or TRI: 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 Thomson Reuters (TRI). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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 has a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that AMADY likely has seen a stronger improvement to its earnings outlook than TRI has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AMADY currently has a forward P/E ratio of 19.91, while TRI has a forward P/E of 43.78. We also note that AMADY has a PEG ratio of 1.16. 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. TRI currently has a PEG ratio of 4.08.
Another notable valuation metric for AMADY is its P/B ratio of 5.75. 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, TRI has a P/B of 6.42.
These metrics, and several others, help AMADY earn a Value grade of B, while TRI has been given a Value grade of D.
AMADY sticks out from TRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMADY is the better option right now.
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Amadeus IT Group SA Unsponsored ADR (AMADY) : Free Stock Analysis Report
Thomson Reuters Corp (TRI) : Free Stock Analysis Report