We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EQNR vs. AMRC: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Equinor (EQNR - Free Report) and Ameresco (AMRC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Equinor and Ameresco are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EQNR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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 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.
EQNR currently has a forward P/E ratio of 9.62, while AMRC has a forward P/E of 43.92. We also note that EQNR has a PEG ratio of 0.20. 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. AMRC currently has a PEG ratio of 2.51.
Another notable valuation metric for EQNR is its P/B ratio of 2. 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, AMRC has a P/B of 5.12.
These are just a few of the metrics contributing to EQNR's Value grade of A and AMRC's Value grade of D.
EQNR stands above AMRC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EQNR is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
EQNR vs. AMRC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Equinor (EQNR - Free Report) and Ameresco (AMRC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Equinor and Ameresco are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EQNR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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 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.
EQNR currently has a forward P/E ratio of 9.62, while AMRC has a forward P/E of 43.92. We also note that EQNR has a PEG ratio of 0.20. 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. AMRC currently has a PEG ratio of 2.51.
Another notable valuation metric for EQNR is its P/B ratio of 2. 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, AMRC has a P/B of 5.12.
These are just a few of the metrics contributing to EQNR's Value grade of A and AMRC's Value grade of D.
EQNR stands above AMRC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EQNR is the superior value option right now.