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EONGY vs. NEE: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Utility - Electric Power sector have probably already heard of E.ON SE (EONGY - Free Report) and NextEra Energy (NEE - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, E.ON SE has a Zacks Rank of #2 (Buy), while NextEra Energy has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EONGY is likely seeing its earnings outlook improve to a greater extent. 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.
EONGY currently has a forward P/E ratio of 9.67, while NEE has a forward P/E of 19.04. We also note that EONGY has a PEG ratio of 0.75. 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. NEE currently has a PEG ratio of 2.33.
Another notable valuation metric for EONGY is its P/B ratio of 1.37. 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, NEE has a P/B of 2.14.
These metrics, and several others, help EONGY earn a Value grade of A, while NEE has been given a Value grade of D.
EONGY has seen stronger estimate revision activity and sports more attractive valuation metrics than NEE, so it seems like value investors will conclude that EONGY is the superior option right now.
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EONGY vs. NEE: Which Stock Is the Better Value Option?
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of E.ON SE (EONGY - Free Report) and NextEra Energy (NEE - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, E.ON SE has a Zacks Rank of #2 (Buy), while NextEra Energy has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EONGY is likely seeing its earnings outlook improve to a greater extent. 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.
EONGY currently has a forward P/E ratio of 9.67, while NEE has a forward P/E of 19.04. We also note that EONGY has a PEG ratio of 0.75. 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. NEE currently has a PEG ratio of 2.33.
Another notable valuation metric for EONGY is its P/B ratio of 1.37. 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, NEE has a P/B of 2.14.
These metrics, and several others, help EONGY earn a Value grade of A, while NEE has been given a Value grade of D.
EONGY has seen stronger estimate revision activity and sports more attractive valuation metrics than NEE, so it seems like value investors will conclude that EONGY is the superior option right now.