ATI vs. EH: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Aerospace - Defense Equipment sector should consider ATI and EHang Holdings Limited, with ATI currently presenting a more favorable investment opportunity based on valuation metrics and earnings outlook [1]. Valuation Metrics - ATI has a forward P/E ratio of 27.39, significantly lower than EHang's forward P/E of 1,944.00, indicating that ATI is more reasonably priced relative to its earnings [5]. - The PEG ratio for ATI is 1.14, while EHang's PEG ratio is 58.64, suggesting that ATI's expected earnings growth is more aligned with its valuation [5]. - ATI's P/B ratio stands at 6.21, compared to EHang's P/B of 9.91, further indicating that ATI is undervalued relative to its book value [6]. Earnings Outlook - ATI holds a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions, while EHang has a Zacks Rank of 4 (Sell), indicating a less favorable earnings outlook [3]. - The stronger estimate revision activity for ATI suggests that its earnings outlook is improving more significantly than that of EHang [7]. Value Grades - ATI has a Value grade of B, while EHang has a Value grade of F, highlighting ATI's superior valuation metrics and overall investment attractiveness [6].