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CSIQ vs. SEDG: Which Stock Is the Better Value Option?
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Investors interested in Solar stocks are likely familiar with Canadian Solar (CSIQ - Free Report) and SolarEdge Technologies (SEDG - 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.
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 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, Canadian Solar is sporting a Zacks Rank of #2 (Buy), while SolarEdge Technologies has a Zacks Rank of #3 (Hold). This means that CSIQ's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CSIQ currently has a forward P/E ratio of 8.40, while SEDG has a forward P/E of 48.32. We also note that CSIQ has a PEG ratio of 0.26. 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. SEDG currently has a PEG ratio of 1.93.
Another notable valuation metric for CSIQ is its P/B ratio of 0.91. 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, SEDG has a P/B of 10.06.
These are just a few of the metrics contributing to CSIQ's Value grade of A and SEDG's Value grade of C.
CSIQ sticks out from SEDG in both our Zacks Rank and Style Scores models, so value investors will likely feel that CSIQ is the better option right now.
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CSIQ vs. SEDG: Which Stock Is the Better Value Option?
Investors interested in Solar stocks are likely familiar with Canadian Solar (CSIQ - Free Report) and SolarEdge Technologies (SEDG - 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.
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 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, Canadian Solar is sporting a Zacks Rank of #2 (Buy), while SolarEdge Technologies has a Zacks Rank of #3 (Hold). This means that CSIQ's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CSIQ currently has a forward P/E ratio of 8.40, while SEDG has a forward P/E of 48.32. We also note that CSIQ has a PEG ratio of 0.26. 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. SEDG currently has a PEG ratio of 1.93.
Another notable valuation metric for CSIQ is its P/B ratio of 0.91. 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, SEDG has a P/B of 10.06.
These are just a few of the metrics contributing to CSIQ's Value grade of A and SEDG's Value grade of C.
CSIQ sticks out from SEDG in both our Zacks Rank and Style Scores models, so value investors will likely feel that CSIQ is the better option right now.