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EVRG vs. WMB: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Oil and Gas - Production and Pipelines sector have probably already heard of Evergy Inc (EVRG - Free Report) and Williams Companies, Inc. (The) (WMB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Evergy Inc has a Zacks Rank of #2 (Buy), while Williams Companies, Inc. (The) has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that EVRG likely has seen a stronger improvement to its earnings outlook than WMB has recently. But this is just one piece of the puzzle for value investors.

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 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.

EVRG currently has a forward P/E ratio of 16.28, while WMB has a forward P/E of 16.89. We also note that EVRG has a PEG ratio of 3.12. 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. WMB currently has a PEG ratio of 4.83.

Another notable valuation metric for EVRG is its P/B ratio of 1.42. 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, WMB has a P/B of 2.86.

These metrics, and several others, help EVRG earn a Value grade of B, while WMB has been given a Value grade of C.

EVRG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EVRG is likely the superior value option right now.


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Williams Companies, Inc. (The) (WMB) - free report >>

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