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TTE vs. CWEN: Which Stock Is the Better Value Option?

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Investors interested in Alternative Energy - Other stocks are likely familiar with TotalEnergies SE Sponsored ADR (TTE - Free Report) and Clearway Energy (CWEN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, TotalEnergies SE Sponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Clearway Energy has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TTE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TTE currently has a forward P/E ratio of 9.13, while CWEN has a forward P/E of 41.25. We also note that TTE has a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CWEN currently has a PEG ratio of 1.61.

Another notable valuation metric for TTE is its P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CWEN has a P/B of 2.01.

These are just a few of the metrics contributing to TTE's Value grade of B and CWEN's Value grade of C.

TTE sticks out from CWEN in both our Zacks Rank and Style Scores models, so value investors will likely feel that TTE is the better option right now.


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Clearway Energy, Inc. (CWEN) - free report >>

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