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SJI vs. ATO: 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 South Jersey Industries and Atmos Energy (ATO - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, South Jersey Industries has a Zacks Rank of #2 (Buy), while Atmos Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SJI has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
SJI currently has a forward P/E ratio of 13.51, while ATO has a forward P/E of 17.69. We also note that SJI has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATO currently has a PEG ratio of 2.37.
Another notable valuation metric for SJI is its P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ATO has a P/B of 1.58.
These metrics, and several others, help SJI earn a Value grade of B, while ATO has been given a Value grade of C.
SJI stands above ATO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SJI is the superior value option right now.
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SJI vs. ATO: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of South Jersey Industries and Atmos Energy (ATO - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, South Jersey Industries has a Zacks Rank of #2 (Buy), while Atmos Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SJI has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
SJI currently has a forward P/E ratio of 13.51, while ATO has a forward P/E of 17.69. We also note that SJI has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATO currently has a PEG ratio of 2.37.
Another notable valuation metric for SJI is its P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ATO has a P/B of 1.58.
These metrics, and several others, help SJI earn a Value grade of B, while ATO has been given a Value grade of C.
SJI stands above ATO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SJI is the superior value option right now.