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UGI vs. OKE: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of UGI (UGI - Free Report) and Oneok Inc. (OKE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
UGI and Oneok Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that UGI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UGI currently has a forward P/E ratio of 13.50, while OKE has a forward P/E of 18.60. We also note that UGI has a PEG ratio of 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OKE currently has a PEG ratio of 3.72.
Another notable valuation metric for UGI is its P/B ratio of 1.89. 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, OKE has a P/B of 4.65.
These metrics, and several others, help UGI earn a Value grade of A, while OKE has been given a Value grade of C.
UGI sticks out from OKE in both our Zacks Rank and Style Scores models, so value investors will likely feel that UGI is the better option right now.
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UGI vs. OKE: Which Stock Is the Better Value Option?
Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of UGI (UGI - Free Report) and Oneok Inc. (OKE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
UGI and Oneok Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that UGI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UGI currently has a forward P/E ratio of 13.50, while OKE has a forward P/E of 18.60. We also note that UGI has a PEG ratio of 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OKE currently has a PEG ratio of 3.72.
Another notable valuation metric for UGI is its P/B ratio of 1.89. 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, OKE has a P/B of 4.65.
These metrics, and several others, help UGI earn a Value grade of A, while OKE has been given a Value grade of C.
UGI sticks out from OKE in both our Zacks Rank and Style Scores models, so value investors will likely feel that UGI is the better option right now.