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

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Here’s a clear look at AME and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAMETXT
Company NameAMETEK, Inc.Textron Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryElectrical EquipmentAerospace & Defense
Market Capitalization42.34 billion USD14.13 billion USD
ExchangeNYSENYSE
Listing DateJuly 19, 1984February 21, 1973
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AME and TXT 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.

AME vs. TXT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAMETXT
5-Day Price Return-0.91%-1.28%
13-Week Price Return1.34%3.76%
26-Week Price Return-0.16%8.47%
52-Week Price Return13.84%-10.53%
Month-to-Date Return0.19%1.95%
Year-to-Date Return2.74%3.66%
10-Day Avg. Volume1.13M1.29M
3-Month Avg. Volume1.34M1.55M
3-Month Volatility17.75%23.66%
Beta1.131.14

Profitability

Return on Equity (TTM)

AME

14.53%

Electrical Equipment Industry

Max
37.56%
Q3
20.60%
Median
14.38%
Q1
4.35%
Min
0.90%

AME’s Return on Equity of 14.53% is on par with the norm for the Electrical Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

TXT

11.31%

Aerospace & Defense Industry

Max
43.89%
Q3
22.42%
Median
12.50%
Q1
5.21%
Min
-6.24%

TXT’s Return on Equity of 11.31% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

AME vs. TXT: A comparison of their Return on Equity (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

AME

20.60%

Electrical Equipment Industry

Max
20.43%
Q3
10.97%
Median
6.07%
Q1
3.16%
Min
0.29%

AME’s Net Profit Margin of 20.60% is exceptionally high, placing it well beyond the typical range for the Electrical Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

TXT

5.80%

Aerospace & Defense Industry

Max
14.54%
Q3
8.08%
Median
6.17%
Q1
2.49%
Min
-1.63%

TXT’s Net Profit Margin of 5.80% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

AME vs. TXT: A comparison of their Net Profit Margin (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

AME

26.24%

Electrical Equipment Industry

Max
26.20%
Q3
14.31%
Median
7.54%
Q1
3.77%
Min
-5.64%

AME’s Operating Profit Margin of 26.24% is exceptionally high, placing it well above the typical range for the Electrical Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

TXT

5.50%

Aerospace & Defense Industry

Max
16.63%
Q3
10.38%
Median
8.29%
Q1
6.21%
Min
0.95%

TXT’s Operating Profit Margin of 5.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

AME vs. TXT: A comparison of their Operating Profit Margin (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolAMETXT
Return on Equity (TTM)14.53%11.31%
Return on Assets (TTM)9.66%4.85%
Net Profit Margin (TTM)20.60%5.80%
Operating Profit Margin (TTM)26.24%5.50%
Gross Profit Margin (TTM)36.12%19.73%

Financial Strength

Current Ratio (MRQ)

AME

1.63

Electrical Equipment Industry

Max
3.02
Q3
1.99
Median
1.41
Q1
1.07
Min
0.80

AME’s Current Ratio of 1.63 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

TXT

1.70

Aerospace & Defense Industry

Max
3.09
Q3
1.98
Median
1.23
Q1
1.03
Min
0.02

TXT’s Current Ratio of 1.70 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

AME vs. TXT: A comparison of their Current Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AME

0.19

Electrical Equipment Industry

Max
1.44
Q3
0.99
Median
0.56
Q1
0.24
Min
0.00

Falling into the lower quartile for the Electrical Equipment industry, AME’s Debt-to-Equity Ratio of 0.19 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

TXT

0.50

Aerospace & Defense Industry

Max
1.70
Q3
1.04
Median
0.68
Q1
0.41
Min
0.00

TXT’s Debt-to-Equity Ratio of 0.50 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AME vs. TXT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

AME

15.71

Electrical Equipment Industry

Max
36.12
Q3
19.29
Median
9.38
Q1
1.16
Min
-10.92

AME’s Interest Coverage Ratio of 15.71 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

TXT

10.72

Aerospace & Defense Industry

Max
36.57
Q3
19.90
Median
7.04
Q1
2.40
Min
-7.63

TXT’s Interest Coverage Ratio of 10.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

AME vs. TXT: A comparison of their Interest Coverage Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolAMETXT
Current Ratio (MRQ)1.631.70
Quick Ratio (MRQ)1.040.71
Debt-to-Equity Ratio (MRQ)0.190.50
Interest Coverage Ratio (TTM)15.7110.72

Growth

Revenue Growth

AME vs. TXT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AME vs. TXT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AME

0.64%

Electrical Equipment Industry

Max
2.20%
Q3
1.53%
Median
1.01%
Q1
0.00%
Min
0.00%

AME’s Dividend Yield of 0.64% is consistent with its peers in the Electrical Equipment industry, providing a dividend return that is standard for its sector.

TXT

0.08%

Aerospace & Defense Industry

Max
2.03%
Q3
1.22%
Median
0.43%
Q1
0.00%
Min
0.00%

TXT’s Dividend Yield of 0.08% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

AME vs. TXT: A comparison of their Dividend Yield (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

AME

18.94%

Electrical Equipment Industry

Max
119.44%
Q3
51.87%
Median
27.71%
Q1
0.00%
Min
0.00%

AME’s Dividend Payout Ratio of 18.94% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

TXT

1.85%

Aerospace & Defense Industry

Max
83.87%
Q3
49.90%
Median
16.48%
Q1
0.00%
Min
0.00%

TXT’s Dividend Payout Ratio of 1.85% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AME vs. TXT: A comparison of their Dividend Payout Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolAMETXT
Dividend Yield (TTM)0.64%0.08%
Dividend Payout Ratio (TTM)18.94%1.85%

Valuation

Price-to-Earnings Ratio (TTM)

AME

29.53

Electrical Equipment Industry

Max
81.85
Q3
44.17
Median
27.61
Q1
18.62
Min
7.73

AME’s P/E Ratio of 29.53 is within the middle range for the Electrical Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

TXT

17.34

Aerospace & Defense Industry

Max
65.97
Q3
54.11
Median
34.53
Q1
23.66
Min
0.00

In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 17.34 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AME vs. TXT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

AME

6.08

Electrical Equipment Industry

Max
8.18
Q3
4.02
Median
1.84
Q1
0.97
Min
0.44

AME’s P/S Ratio of 6.08 is in the upper echelon for the Electrical Equipment 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.

TXT

1.01

Aerospace & Defense Industry

Max
8.07
Q3
4.49
Median
2.42
Q1
1.39
Min
0.00

In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.01 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AME vs. TXT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

AME

4.02

Electrical Equipment Industry

Max
8.50
Q3
4.53
Median
3.39
Q1
1.70
Min
0.51

AME’s P/B Ratio of 4.02 is within the conventional range for the Electrical Equipment 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.

TXT

1.95

Aerospace & Defense Industry

Max
13.67
Q3
7.92
Median
4.65
Q1
2.68
Min
0.82

TXT’s P/B Ratio of 1.95 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AME vs. TXT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolAMETXT
Price-to-Earnings Ratio (TTM)29.5317.34
Price-to-Sales Ratio (TTM)6.081.01
Price-to-Book Ratio (MRQ)4.021.95
Price-to-Free Cash Flow Ratio (TTM)25.2219.15