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HE vs. EXC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Hawaiian Electric (HE - Free Report) and Exelon (EXC - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Hawaiian Electric is sporting a Zacks Rank of #2 (Buy), while Exelon has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HE has an improving earnings outlook. But this is only part of the picture for value investors.
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.
HE currently has a forward P/E ratio of 7.34, while EXC has a forward P/E of 17.07. We also note that HE has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EXC currently has a PEG ratio of 2.71.
Another notable valuation metric for HE is its P/B ratio of 0.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EXC has a P/B of 1.59.
Based on these metrics and many more, HE holds a Value grade of A, while EXC has a Value grade of C.
HE sticks out from EXC in both our Zacks Rank and Style Scores models, so value investors will likely feel that HE is the better option right now.
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HE vs. EXC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Hawaiian Electric (HE - Free Report) and Exelon (EXC - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Hawaiian Electric is sporting a Zacks Rank of #2 (Buy), while Exelon has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HE has an improving earnings outlook. But this is only part of the picture for value investors.
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.
HE currently has a forward P/E ratio of 7.34, while EXC has a forward P/E of 17.07. We also note that HE has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EXC currently has a PEG ratio of 2.71.
Another notable valuation metric for HE is its P/B ratio of 0.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EXC has a P/B of 1.59.
Based on these metrics and many more, HE holds a Value grade of A, while EXC has a Value grade of C.
HE sticks out from EXC in both our Zacks Rank and Style Scores models, so value investors will likely feel that HE is the better option right now.