AME vs. BA: A Head-to-Head Stock Comparison

Company Overview

BA’s market capitalization of 161.24 billion USD is significantly greater than AME’s 40.98 billion USD, highlighting its more substantial market valuation.

With betas of 1.12 for AME and 1.41 for BA, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of AME and BA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AME and BA. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• BA’s Price-to-Earnings (P/E) ratio of -14.00 is negative. This indicates the company is currently not generating profit, a key factor that can weigh on its stock valuation and investor sentiment.
• AME’s Forward PEG ratio of 3.87 is very high, suggesting its stock might be overvalued if its price has substantially outrun its future earnings growth forecast. BA’s Forward PEG ratio of -6.41 is negative, often an indicator of issues such as negative current earnings or anticipated earnings contraction, which calls its fundamental valuation into question.
• BA’s Price-to-Book (P/B) ratio of -48.46 indicates a negative book value. This is a serious warning sign regarding its financial stability and raises critical questions about its solvency and overall financial health.

Dividend Comparison

AME provides a 0.65% dividend yield, potentially offering a blend of income and growth, whereas BA currently does not pay a dividend, possibly retaining profits to fund operations or growth initiatives.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AME and BA. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• BA’s quick ratio of 0.37 is low. This indicates that its readily available liquid assets, excluding inventory, might provide a thin cushion for its short-term obligations, highlighting potential constraints on its immediate debt-paying ability without selling inventory.
• BA’s Debt-to-Equity (D/E) ratio of -16.13 indicates negative shareholder equity. This is a critical issue, signaling deep financial instability and potentially jeopardizing its ongoing operations and ability to secure credit.
• BA’s Interest Coverage Ratio (ICR) of -3.55 is negative. This signals that its current operating earnings are insufficient to meet its interest obligations, a critical red flag for its financial health and capacity to manage its debt.