Back to top

Image: Bigstock

EQNR vs. AMRC: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors with an interest in Alternative Energy - Other stocks have likely encountered both Equinor (EQNR - Free Report) and Ameresco (AMRC - 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.

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.

Equinor and Ameresco are sporting Zacks Ranks of #1 (Strong 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 factor that value investors are interested in.

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.

EQNR currently has a forward P/E ratio of 6.49, while AMRC has a forward P/E of 27.24. We also note that EQNR has a PEG ratio of 0.13. 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 1.07.

Another notable valuation metric for EQNR is its P/B ratio of 2.90. 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, AMRC has a P/B of 3.80.

Based on these metrics and many more, EQNR holds a Value grade of A, while AMRC has a Value grade of C.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ameresco, Inc. (AMRC) - free report >>

Equinor ASA (EQNR) - free report >>

Published in