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MDU or NJR: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of MDU Resources (MDU - Free Report) and New Jersey Resources (NJR - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
MDU Resources and New Jersey Resources are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
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.
MDU currently has a forward P/E ratio of 13.86, while NJR has a forward P/E of 24.75. We also note that MDU has a PEG ratio of 2.77. 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. NJR currently has a PEG ratio of 4.13.
Another notable valuation metric for MDU is its P/B ratio of 1.89. 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, NJR has a P/B of 2.24.
These metrics, and several others, help MDU earn a Value grade of B, while NJR has been given a Value grade of F.
Both MDU and NJR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MDU is the superior value option right now.
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MDU or NJR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of MDU Resources (MDU - Free Report) and New Jersey Resources (NJR - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
MDU Resources and New Jersey Resources are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
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.
MDU currently has a forward P/E ratio of 13.86, while NJR has a forward P/E of 24.75. We also note that MDU has a PEG ratio of 2.77. 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. NJR currently has a PEG ratio of 4.13.
Another notable valuation metric for MDU is its P/B ratio of 1.89. 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, NJR has a P/B of 2.24.
These metrics, and several others, help MDU earn a Value grade of B, while NJR has been given a Value grade of F.
Both MDU and NJR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MDU is the superior value option right now.