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EONGY vs. EIX: Which Stock Should Value Investors Buy Now?
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Investors interested in Utility - Electric Power stocks are likely familiar with E.ON SE (EONGY - Free Report) and Edison International (EIX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, E.ON SE has a Zacks Rank of #2 (Buy), while Edison International has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EONGY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EONGY currently has a forward P/E ratio of 8.86, while EIX has a forward P/E of 12.98. We also note that EONGY has a PEG ratio of 0.69. 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. EIX currently has a PEG ratio of 3.52.
Another notable valuation metric for EONGY is its P/B ratio of 1.26. 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, EIX has a P/B of 1.49.
These metrics, and several others, help EONGY earn a Value grade of A, while EIX has been given a Value grade of C.
EONGY has seen stronger estimate revision activity and sports more attractive valuation metrics than EIX, so it seems like value investors will conclude that EONGY is the superior option right now.
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EONGY vs. EIX: Which Stock Should Value Investors Buy Now?
Investors interested in Utility - Electric Power stocks are likely familiar with E.ON SE (EONGY - Free Report) and Edison International (EIX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, E.ON SE has a Zacks Rank of #2 (Buy), while Edison International has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EONGY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EONGY currently has a forward P/E ratio of 8.86, while EIX has a forward P/E of 12.98. We also note that EONGY has a PEG ratio of 0.69. 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. EIX currently has a PEG ratio of 3.52.
Another notable valuation metric for EONGY is its P/B ratio of 1.26. 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, EIX has a P/B of 1.49.
These metrics, and several others, help EONGY earn a Value grade of A, while EIX has been given a Value grade of C.
EONGY has seen stronger estimate revision activity and sports more attractive valuation metrics than EIX, so it seems like value investors will conclude that EONGY is the superior option right now.