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CSAN vs. ORA: Which Stock Is the Better Value Option?
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Investors interested in Alternative Energy - Other stocks are likely familiar with Cosan (CSAN - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Cosan is sporting a Zacks Rank of #2 (Buy), while Ormat Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CSAN likely has seen a stronger improvement to its earnings outlook than ORA 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.
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.
CSAN currently has a forward P/E ratio of 15.19, while ORA has a forward P/E of 40.89. We also note that CSAN has a PEG ratio of 0.85. 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. ORA currently has a PEG ratio of 4.09.
Another notable valuation metric for CSAN is its P/B ratio of 1.24. 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, ORA has a P/B of 2.06.
These metrics, and several others, help CSAN earn a Value grade of B, while ORA has been given a Value grade of D.
CSAN has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that CSAN is the superior option right now.
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CSAN vs. ORA: Which Stock Is the Better Value Option?
Investors interested in Alternative Energy - Other stocks are likely familiar with Cosan (CSAN - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Cosan is sporting a Zacks Rank of #2 (Buy), while Ormat Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CSAN likely has seen a stronger improvement to its earnings outlook than ORA 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.
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.
CSAN currently has a forward P/E ratio of 15.19, while ORA has a forward P/E of 40.89. We also note that CSAN has a PEG ratio of 0.85. 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. ORA currently has a PEG ratio of 4.09.
Another notable valuation metric for CSAN is its P/B ratio of 1.24. 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, ORA has a P/B of 2.06.
These metrics, and several others, help CSAN earn a Value grade of B, while ORA has been given a Value grade of D.
CSAN has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that CSAN is the superior option right now.