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AME vs AXON

AME
AMETEK, Inc.
NEUTRAL
Price
$220.74
Market Cap
$50.98B
Sector
Industrials
AI Confidence
75%
AXON
Axon Enterprise, Inc.
NEUTRAL
Price
$613.14
Market Cap
$48.71B
Sector
Industrials
AI Confidence
68%

Valuation

P/E Ratio
AME
34.98
AXON
192.21
Forward P/E
AME
27.58
AXON
81.34
P/B Ratio
AME
4.83
AXON
15.98
P/S Ratio
AME
7.12
AXON
19.04
EV/EBITDA
AME
23.43
AXON
674.69

Profitability

Gross Margin
AME
35.88%
AXON
60.36%
Operating Margin
AME
25.79%
AXON
-0.23%
Profit Margin
AME
20.5%
AXON
10.05%
ROE
AME
14.63%
AXON
10.03%
ROA
AME
7.49%
AXON
-0.03%

Growth

Revenue Growth
AME
10.8%
AXON
30.6%
Earnings Growth
AME
8.8%
AXON
--

Financial Health

Debt/Equity
AME
0.26
AXON
0.69
Current Ratio
AME
1.16
AXON
3.12
Quick Ratio
AME
0.66
AXON
2.73

Dividends

Dividend Yield
AME
0.56%
AXON
--
Payout Ratio
AME
19.09%
AXON
0.0%

AI Verdict

AME NEUTRAL

AME exhibits strong financial health with a Piotroski F-Score of 7/9, indicating solid operational performance and earnings quality. However, the stock trades at a significant premium to both the Graham Number ($80.57) and intrinsic value estimate ($127.46), currently priced at $220.74, which reflects high growth expectations not fully supported by near-term growth metrics. While profitability and margin efficiency are well above sector averages, insider selling activity and stretched valuation multiples present cautionary signals. The lack of Altman Z-Score data prevents a full distress risk assessment, but low debt levels suggest limited near-term solvency concerns.

Strengths
Strong Piotroski F-Score of 7/9 indicates high financial health and consistent profitability
Exceptional profit margins: 20.50% net margin and 25.79% operating margin, well above sector average
Low leverage with Debt/Equity ratio of 0.26, providing financial flexibility
Risks
Stock trades at a steep valuation premium: P/E of 34.98 vs Graham-based fair value of $80.57
Insider selling pressure: $34.49M in net sales over last 6 months, suggesting lack of confidence at current levels
Weak technical trend score of 10/100 indicates deteriorating price momentum near 52-week high
AXON NEUTRAL

AXON's Advanced Deterministic Scorecard shows a Piotroski F-Score of 6/9, indicating stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. The stock trades at a significant premium to both the Graham Number ($52.48) and intrinsic value ($22.33), supported by strong revenue growth (30.6% YoY) and consistent earnings beats, though recent negative EPS growth and insider selling raise concerns. Profitability is mixed with a healthy gross margin (60.36%) but negative operating and asset returns (ROA: -0.03%, Operating Margin: -0.23%). Analysts maintain a 'buy' recommendation with a $815 target, implying 33% upside, but insider sentiment is bearish, and technical trend is neutral to weak.

Strengths
Strong revenue growth of 30.6% YoY, well above sector average of 18.6%
Consistent earnings beat streak with 3 out of last 4 quarters exceeding estimates and an average surprise of 22.87%
High gross margin of 60.36%, reflecting pricing power and efficient cost control in core operations
Risks
Extremely high valuation metrics: P/E of 192.21 and Forward P/E of 81.34, far exceeding sector average of 54.20
Negative operating margin (-0.23%) and ROA (-0.03%) indicate core operations are not currently profitable on an operating basis
Recent YoY and Q/Q EPS growth are deeply negative (-102.1% and -101.4% respectively), signaling a sharp earnings downturn

Compare Another Pair

AME vs AXON: Head-to-Head Comparison

This page compares AMETEK, Inc. (AME) and Axon Enterprise, Inc. (AXON) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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