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UTL vs. CNP: Which Stock Is the Better Value Option?
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Investors with an interest in Utility - Electric Power stocks have likely encountered both Unitil (UTL - Free Report) and CenterPoint Energy (CNP - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Unitil and CenterPoint Energy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that UTL 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 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.
UTL currently has a forward P/E ratio of 22.64, while CNP has a forward P/E of 23.30. We also note that UTL has a PEG ratio of 3.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNP currently has a PEG ratio of 5.99.
Another notable valuation metric for UTL is its P/B ratio of 1.99. 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, CNP has a P/B of 2.21.
Based on these metrics and many more, UTL holds a Value grade of B, while CNP has a Value grade of D.
UTL stands above CNP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UTL is the superior value option right now.
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UTL vs. CNP: Which Stock Is the Better Value Option?
Investors with an interest in Utility - Electric Power stocks have likely encountered both Unitil (UTL - Free Report) and CenterPoint Energy (CNP - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Unitil and CenterPoint Energy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that UTL 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 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.
UTL currently has a forward P/E ratio of 22.64, while CNP has a forward P/E of 23.30. We also note that UTL has a PEG ratio of 3.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNP currently has a PEG ratio of 5.99.
Another notable valuation metric for UTL is its P/B ratio of 1.99. 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, CNP has a P/B of 2.21.
Based on these metrics and many more, UTL holds a Value grade of B, while CNP has a Value grade of D.
UTL stands above CNP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UTL is the superior value option right now.