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EVRG or AMRC: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Evergy Inc (EVRG - Free Report) or Ameresco (AMRC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Evergy Inc and Ameresco are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

EVRG currently has a forward P/E ratio of 17.05, while AMRC has a forward P/E of 51.93. We also note that EVRG has a PEG ratio of 2.78. 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. AMRC currently has a PEG ratio of 2.97.

Another notable valuation metric for EVRG is its P/B ratio of 1.42. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AMRC has a P/B of 6.49.

These are just a few of the metrics contributing to EVRG's Value grade of B and AMRC's Value grade of F.

Both EVRG and AMRC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EVRG is the superior value option right now.


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