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EVRG vs. WMB: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Oil and Gas - Production and Pipelines sector have probably already heard of Evergy Inc (EVRG - Free Report) and Williams Companies, Inc. The (WMB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 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.

Both Evergy Inc and Williams Companies, Inc. The have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.

EVRG currently has a forward P/E ratio of 17.45, while WMB has a forward P/E of 21.53. We also note that EVRG has a PEG ratio of 3.33. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WMB currently has a PEG ratio of 6.15.

Another notable valuation metric for EVRG is its P/B ratio of 1.49. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMB has a P/B of 2.95.

These metrics, and several others, help EVRG earn a Value grade of B, while WMB has been given a Value grade of C.

Both EVRG and WMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EVRG is the superior value option right now.


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Williams Companies, Inc. (The) (WMB) - free report >>

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