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SR vs. OGS: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Utility - Gas Distribution sector might want to consider either Spire (SR - Free Report) or ONE Gas (OGS - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Spire and ONE Gas are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
SR currently has a forward P/E ratio of 14.17, while OGS has a forward P/E of 17.33. We also note that SR has a PEG ratio of 2.83. 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. OGS currently has a PEG ratio of 3.47.
Another notable valuation metric for SR is its P/B ratio of 1.24. 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, OGS has a P/B of 1.56.
Based on these metrics and many more, SR holds a Value grade of B, while OGS has a Value grade of C.
SR stands above OGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SR is the superior value option right now.
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SR vs. OGS: Which Stock Is the Better Value Option?
Investors looking for stocks in the Utility - Gas Distribution sector might want to consider either Spire (SR - Free Report) or ONE Gas (OGS - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Spire and ONE Gas are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
SR currently has a forward P/E ratio of 14.17, while OGS has a forward P/E of 17.33. We also note that SR has a PEG ratio of 2.83. 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. OGS currently has a PEG ratio of 3.47.
Another notable valuation metric for SR is its P/B ratio of 1.24. 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, OGS has a P/B of 1.56.
Based on these metrics and many more, SR holds a Value grade of B, while OGS has a Value grade of C.
SR stands above OGS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SR is the superior value option right now.