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SWX vs. OGS: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of Southwest Gas (SWX - Free Report) and ONE Gas (OGS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Southwest Gas and ONE Gas are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SWX has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
SWX currently has a forward P/E ratio of 20.28, while OGS has a forward P/E of 22.36. We also note that SWX has a PEG ratio of 3.38. 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. OGS currently has a PEG ratio of 4.07.
Another notable valuation metric for SWX is its P/B ratio of 1.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OGS has a P/B of 1.97.
Based on these metrics and many more, SWX holds a Value grade of B, while OGS has a Value grade of D.
SWX stands above OGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SWX is the superior value option right now.
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SWX vs. OGS: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of Southwest Gas (SWX - Free Report) and ONE Gas (OGS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Southwest Gas and ONE Gas are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SWX has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
SWX currently has a forward P/E ratio of 20.28, while OGS has a forward P/E of 22.36. We also note that SWX has a PEG ratio of 3.38. 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. OGS currently has a PEG ratio of 4.07.
Another notable valuation metric for SWX is its P/B ratio of 1.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OGS has a P/B of 1.97.
Based on these metrics and many more, SWX holds a Value grade of B, while OGS has a Value grade of D.
SWX stands above OGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SWX is the superior value option right now.