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KEP vs. D: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Korea Electric Power (KEP - Free Report) and Dominion Energy (D - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, Korea Electric Power is sporting a Zacks Rank of #2 (Buy), while Dominion Energy has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KEP likely has seen a stronger improvement to its earnings outlook than D has recently. But this is just one piece of the puzzle for value investors.
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 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.
KEP currently has a forward P/E ratio of 19.46, while D has a forward P/E of 19.64. We also note that KEP has a PEG ratio of 3.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. D currently has a PEG ratio of 4.16.
Another notable valuation metric for KEP is its P/B ratio of 0.21. 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, D has a P/B of 2.35.
Based on these metrics and many more, KEP holds a Value grade of B, while D has a Value grade of D.
KEP has seen stronger estimate revision activity and sports more attractive valuation metrics than D, so it seems like value investors will conclude that KEP is the superior option right now.
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KEP vs. D: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Korea Electric Power (KEP - Free Report) and Dominion Energy (D - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, Korea Electric Power is sporting a Zacks Rank of #2 (Buy), while Dominion Energy has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KEP likely has seen a stronger improvement to its earnings outlook than D has recently. But this is just one piece of the puzzle for value investors.
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 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.
KEP currently has a forward P/E ratio of 19.46, while D has a forward P/E of 19.64. We also note that KEP has a PEG ratio of 3.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. D currently has a PEG ratio of 4.16.
Another notable valuation metric for KEP is its P/B ratio of 0.21. 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, D has a P/B of 2.35.
Based on these metrics and many more, KEP holds a Value grade of B, while D has a Value grade of D.
KEP has seen stronger estimate revision activity and sports more attractive valuation metrics than D, so it seems like value investors will conclude that KEP is the superior option right now.