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OGE or MGEE: Which Is the Better Value Stock Right Now?
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Investors with an interest in Utility - Electric Power stocks have likely encountered both OGE Energy (OGE - Free Report) and MGE (MGEE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, OGE Energy has a Zacks Rank of #2 (Buy), while MGE has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OGE likely has seen a stronger improvement to its earnings outlook than MGEE has recently. 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.
OGE currently has a forward P/E ratio of 18.48, while MGEE has a forward P/E of 23.17. We also note that OGE has a PEG ratio of 1.03. 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. MGEE currently has a PEG ratio of 4.33.
Another notable valuation metric for OGE is its P/B ratio of 1.69. 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, MGEE has a P/B of 2.61.
These are just a few of the metrics contributing to OGE's Value grade of B and MGEE's Value grade of D.
OGE sticks out from MGEE in both our Zacks Rank and Style Scores models, so value investors will likely feel that OGE is the better option right now.
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OGE or MGEE: Which Is the Better Value Stock Right Now?
Investors with an interest in Utility - Electric Power stocks have likely encountered both OGE Energy (OGE - Free Report) and MGE (MGEE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, OGE Energy has a Zacks Rank of #2 (Buy), while MGE has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OGE likely has seen a stronger improvement to its earnings outlook than MGEE has recently. 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.
OGE currently has a forward P/E ratio of 18.48, while MGEE has a forward P/E of 23.17. We also note that OGE has a PEG ratio of 1.03. 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. MGEE currently has a PEG ratio of 4.33.
Another notable valuation metric for OGE is its P/B ratio of 1.69. 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, MGEE has a P/B of 2.61.
These are just a few of the metrics contributing to OGE's Value grade of B and MGEE's Value grade of D.
OGE sticks out from MGEE in both our Zacks Rank and Style Scores models, so value investors will likely feel that OGE is the better option right now.