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KMI vs. PBA: Which Stock Is the Better Value Option?
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Investors with an interest in Oil and Gas - Production and Pipelines stocks have likely encountered both Kinder Morgan (KMI - Free Report) and Pembina Pipeline (PBA - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Kinder Morgan has a Zacks Rank of #2 (Buy), while Pembina Pipeline 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 KMI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
KMI currently has a forward P/E ratio of 15.57, while PBA has a forward P/E of 16.53. We also note that KMI has a PEG ratio of 5.19. 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. PBA currently has a PEG ratio of 5.51.
Another notable valuation metric for KMI is its P/B ratio of 1.33. 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, PBA has a P/B of 2.16.
These metrics, and several others, help KMI earn a Value grade of B, while PBA has been given a Value grade of C.
KMI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KMI is likely the superior value option right now.
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KMI vs. PBA: Which Stock Is the Better Value Option?
Investors with an interest in Oil and Gas - Production and Pipelines stocks have likely encountered both Kinder Morgan (KMI - Free Report) and Pembina Pipeline (PBA - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Kinder Morgan has a Zacks Rank of #2 (Buy), while Pembina Pipeline 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 KMI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
KMI currently has a forward P/E ratio of 15.57, while PBA has a forward P/E of 16.53. We also note that KMI has a PEG ratio of 5.19. 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. PBA currently has a PEG ratio of 5.51.
Another notable valuation metric for KMI is its P/B ratio of 1.33. 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, PBA has a P/B of 2.16.
These metrics, and several others, help KMI earn a Value grade of B, while PBA has been given a Value grade of C.
KMI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KMI is likely the superior value option right now.