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CWEN vs. VWDRY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWEN - Free Report) or Vestas Wind Systems AS (VWDRY - 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 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, Clearway Energy has a Zacks Rank of #2 (Buy), while Vestas Wind Systems AS has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CWEN likely has seen a stronger improvement to its earnings outlook than VWDRY has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CWEN currently has a forward P/E ratio of 15.25, while VWDRY has a forward P/E of 111.35. We also note that CWEN has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VWDRY currently has a PEG ratio of 2.22.
Another notable valuation metric for CWEN is its P/B ratio of 1.49. 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, VWDRY has a P/B of 7.79.
These metrics, and several others, help CWEN earn a Value grade of B, while VWDRY has been given a Value grade of D.
CWEN 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 CWEN is likely the superior value option right now.
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CWEN vs. VWDRY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWEN - Free Report) or Vestas Wind Systems AS (VWDRY - 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 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, Clearway Energy has a Zacks Rank of #2 (Buy), while Vestas Wind Systems AS has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CWEN likely has seen a stronger improvement to its earnings outlook than VWDRY has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CWEN currently has a forward P/E ratio of 15.25, while VWDRY has a forward P/E of 111.35. We also note that CWEN has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VWDRY currently has a PEG ratio of 2.22.
Another notable valuation metric for CWEN is its P/B ratio of 1.49. 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, VWDRY has a P/B of 7.79.
These metrics, and several others, help CWEN earn a Value grade of B, while VWDRY has been given a Value grade of D.
CWEN 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 CWEN is likely the superior value option right now.