Back to top

Image: Bigstock

TTE or CWEN: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of TotalEnergies SE Sponsored ADR (TTE - Free Report) and Clearway Energy (CWEN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

TotalEnergies SE Sponsored ADR has a Zacks Rank of #2 (Buy), while Clearway Energy has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TTE likely has seen a stronger improvement to its earnings outlook than CWEN has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

TTE currently has a forward P/E ratio of 8.36, while CWEN has a forward P/E of 17.14. We also note that TTE has a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CWEN currently has a PEG ratio of 0.64.

Another notable valuation metric for TTE is its P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CWEN has a P/B of 2.13.

These metrics, and several others, help TTE earn a Value grade of A, while CWEN has been given a Value grade of C.

TTE sticks out from CWEN in both our Zacks Rank and Style Scores models, so value investors will likely feel that TTE is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Clearway Energy, Inc. (CWEN) - free report >>

TotalEnergies SE Sponsored ADR (TTE) - free report >>

Published in