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IBDRY or POR: Which Is the Better Value Stock Right Now?

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Investors interested in Utility - Electric Power stocks are likely familiar with Iberdrola S.A. (IBDRY - Free Report) and Portland General Electric (POR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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, Iberdrola S.A. has a Zacks Rank of #2 (Buy), while Portland General Electric has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that IBDRY likely has seen a stronger improvement to its earnings outlook than POR has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

IBDRY currently has a forward P/E ratio of 16.32, while POR has a forward P/E of 18.10. We also note that IBDRY has a PEG ratio of 2.03. 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. POR currently has a PEG ratio of 2.98.

Another notable valuation metric for IBDRY is its P/B ratio of 1.27. 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, POR has a P/B of 1.51.

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

IBDRY has seen stronger estimate revision activity and sports more attractive valuation metrics than POR, so it seems like value investors will conclude that IBDRY is the superior option right now.


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