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NEP or CSAN: Which Is the Better Value Stock Right Now?

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Investors with an interest in Alternative Energy - Other stocks have likely encountered both NextEra Energy Partners (NEP - Free Report) and Cosan (CSAN - 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, NextEra Energy Partners has a Zacks Rank of #2 (Buy), while Cosan has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NEP likely has seen a stronger improvement to its earnings outlook than CSAN has recently. But this is just one factor that value investors are interested in.

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 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.

NEP currently has a forward P/E ratio of 14.69, while CSAN has a forward P/E of 45.40. We also note that NEP has a PEG ratio of 1.47. 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. CSAN currently has a PEG ratio of 2.53.

Another notable valuation metric for NEP is its P/B ratio of 0.53. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CSAN has a P/B of 1.25.

Based on these metrics and many more, NEP holds a Value grade of B, while CSAN has a Value grade of C.

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


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NextEra Energy Partners, LP (NEP) - free report >>

Cosan S.A. Sponsored ADR (CSAN) - free report >>

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