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RWEOY or ED: 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 RWE AG (RWEOY - Free Report) and Consolidated Edison (ED - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
RWE AG and Consolidated Edison are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RWEOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
RWEOY currently has a forward P/E ratio of 9.80, while ED has a forward P/E of 18.96. We also note that RWEOY has a PEG ratio of 6.76. 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. ED currently has a PEG ratio of 9.48.
Another notable valuation metric for RWEOY is its P/B ratio of 0.82. 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, ED has a P/B of 1.53.
These metrics, and several others, help RWEOY earn a Value grade of B, while ED has been given a Value grade of C.
RWEOY sticks out from ED in both our Zacks Rank and Style Scores models, so value investors will likely feel that RWEOY is the better option right now.
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RWEOY or ED: Which Is the Better Value Stock Right Now?
Investors with an interest in Utility - Electric Power stocks have likely encountered both RWE AG (RWEOY - Free Report) and Consolidated Edison (ED - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
RWE AG and Consolidated Edison are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RWEOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
RWEOY currently has a forward P/E ratio of 9.80, while ED has a forward P/E of 18.96. We also note that RWEOY has a PEG ratio of 6.76. 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. ED currently has a PEG ratio of 9.48.
Another notable valuation metric for RWEOY is its P/B ratio of 0.82. 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, ED has a P/B of 1.53.
These metrics, and several others, help RWEOY earn a Value grade of B, while ED has been given a Value grade of C.
RWEOY sticks out from ED in both our Zacks Rank and Style Scores models, so value investors will likely feel that RWEOY is the better option right now.