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IBDRY vs. POR: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Utility - Electric Power sector have probably already heard of 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 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, 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. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

IBDRY currently has a forward P/E ratio of 16.48, while POR has a forward P/E of 18.49. We also note that IBDRY has a PEG ratio of 2.05. 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. POR currently has a PEG ratio of 3.19.

Another notable valuation metric for IBDRY is its P/B ratio of 1.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, POR has a P/B of 1.54.

These are just a few of the metrics contributing to IBDRY's Value grade of B and POR's Value grade of C.

IBDRY sticks out from POR in both our Zacks Rank and Style Scores models, so value investors will likely feel that IBDRY is the better option right now.


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Portland General Electric Company (POR) - free report >>

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