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CSIQ vs. ENPH: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Solar sector might want to consider either Canadian Solar (CSIQ - Free Report) or Enphase Energy (ENPH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Canadian Solar and Enphase Energy are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
CSIQ currently has a forward P/E ratio of 23.49, while ENPH has a forward P/E of 97.10. We also note that CSIQ has a PEG ratio of 0.73. 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. ENPH currently has a PEG ratio of 2.55.
Another notable valuation metric for CSIQ is its P/B ratio of 1.73. 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, ENPH has a P/B of 50.58.
These are just a few of the metrics contributing to CSIQ's Value grade of B and ENPH's Value grade of F.
Both CSIQ and ENPH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CSIQ is the superior value option right now.
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CSIQ vs. ENPH: Which Stock Is the Better Value Option?
Investors looking for stocks in the Solar sector might want to consider either Canadian Solar (CSIQ - Free Report) or Enphase Energy (ENPH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Canadian Solar and Enphase Energy are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
CSIQ currently has a forward P/E ratio of 23.49, while ENPH has a forward P/E of 97.10. We also note that CSIQ has a PEG ratio of 0.73. 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. ENPH currently has a PEG ratio of 2.55.
Another notable valuation metric for CSIQ is its P/B ratio of 1.73. 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, ENPH has a P/B of 50.58.
These are just a few of the metrics contributing to CSIQ's Value grade of B and ENPH's Value grade of F.
Both CSIQ and ENPH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CSIQ is the superior value option right now.