AME vs. AOS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AME and AOS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AME’s market capitalization of 42.53 billion USD is substantially larger than AOS’s 9.65 billion USD, indicating a significant difference in their market valuations.
With betas of 1.11 for AME and 1.21 for AOS, both stocks show similar sensitivity to overall market movements.
| Symbol | AME | AOS |
|---|---|---|
| Company Name | AMETEK, Inc. | A. O. Smith Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Machinery | Industrial - Machinery |
| CEO | David A. Zapico | Kevin J. Wheeler |
| Price | 184.19 USD | 67.92 USD |
| Market Cap | 42.53 billion USD | 9.65 billion USD |
| Beta | 1.11 | 1.21 |
| Exchange | NYSE | NYSE |
| IPO Date | July 19, 1984 | September 30, 1983 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AME and AOS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AME
14.75%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
AME’s Return on Equity of 14.75% is on par with the norm for the Industrial - Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.
AOS
27.63%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Equity of 27.63% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AME
11.22%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
AME’s Return on Invested Capital of 11.22% is in line with the norm for the Industrial - Machinery industry, reflecting a standard level of efficiency in generating profits from its capital base.
AOS
22.35%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Invested Capital of 22.35% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AME
20.43%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
A Net Profit Margin of 20.43% places AME in the upper quartile for the Industrial - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
AOS
13.74%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
AOS’s Net Profit Margin of 13.74% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AME
26.20%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
An Operating Profit Margin of 26.20% places AME in the upper quartile for the Industrial - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
AOS
18.57%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
AOS’s Operating Profit Margin of 18.57% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AME | AOS |
|---|---|---|
| Return on Equity (TTM) | 14.75% | 27.63% |
| Return on Assets (TTM) | 9.52% | 15.99% |
| Return on Invested Capital (TTM) | 11.22% | 22.35% |
| Net Profit Margin (TTM) | 20.43% | 13.74% |
| Operating Profit Margin (TTM) | 26.20% | 18.57% |
| Gross Profit Margin (TTM) | 36.18% | 38.02% |
Financial Strength
Current Ratio
AME
1.41
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
AME’s Current Ratio of 1.41 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
AOS
1.61
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
AOS’s Current Ratio of 1.61 aligns with the median group of the Industrial - Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AME
0.19
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
AME’s Debt-to-Equity Ratio of 0.19 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
AOS
0.16
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
Falling into the lower quartile for the Industrial - Machinery industry, AOS’s Debt-to-Equity Ratio of 0.16 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
AME
23.38
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
AME’s Interest Coverage Ratio of 23.38 is in the upper quartile for the Industrial - Machinery industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
AOS
82.13
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
With an Interest Coverage Ratio of 82.13, AOS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Industrial - Machinery industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AME | AOS |
|---|---|---|
| Current Ratio (TTM) | 1.41 | 1.61 |
| Quick Ratio (TTM) | 0.86 | 1.01 |
| Debt-to-Equity Ratio (TTM) | 0.19 | 0.16 |
| Debt-to-Asset Ratio (TTM) | 0.13 | 0.09 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.73 | 0.16 |
| Interest Coverage Ratio (TTM) | 23.38 | 82.13 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AME and AOS. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AME
0.64%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
AME’s Dividend Yield of 0.64% is consistent with its peers in the Industrial - Machinery industry, providing a dividend return that is standard for its sector.
AOS
1.97%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.97%, AOS offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AME
18.74%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
AME’s Dividend Payout Ratio of 18.74% is within the typical range for the Industrial - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
AOS
36.80%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
AOS’s Dividend Payout Ratio of 36.80% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AME | AOS |
|---|---|---|
| Dividend Yield (TTM) | 0.64% | 1.97% |
| Dividend Payout Ratio (TTM) | 18.74% | 36.80% |
Valuation
Price-to-Earnings Ratio
AME
29.98
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
AME’s P/E Ratio of 29.98 is within the middle range for the Industrial - Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
AOS
18.77
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
In the lower quartile for the Industrial - Machinery industry, AOS’s P/E Ratio of 18.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
AME
4.01
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
AOS
2.13
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
Price-to-Sales Ratio
AME
6.13
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
AME’s P/S Ratio of 6.13 is in the upper echelon for the Industrial - Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
AOS
2.54
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
AOS’s P/S Ratio of 2.54 aligns with the market consensus for the Industrial - Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AME
4.26
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
AME’s P/B Ratio of 4.26 is within the conventional range for the Industrial - Machinery industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
AOS
5.29
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
AOS’s P/B Ratio of 5.29 is in the upper tier for the Industrial - Machinery industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | AME | AOS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 29.98 | 18.77 |
| Forward PEG Ratio (TTM) | 4.01 | 2.13 |
| Price-to-Sales Ratio (P/S, TTM) | 6.13 | 2.54 |
| Price-to-Book Ratio (P/B, TTM) | 4.26 | 5.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.82 | 23.74 |
| EV-to-EBITDA (TTM) | 21.00 | 12.71 |
| EV-to-Sales (TTM) | 6.35 | 2.57 |