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BKH 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 Black Hills (BKH - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Black Hills and Consolidated Edison have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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.
BKH currently has a forward P/E ratio of 14.05, while ED has a forward P/E of 18.46. We also note that BKH has a PEG ratio of 6.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ED currently has a PEG ratio of 9.23.
Another notable valuation metric for BKH is its P/B ratio of 1.11. 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, ED has a P/B of 1.51.
Based on these metrics and many more, BKH holds a Value grade of B, while ED has a Value grade of C.
Both BKH and ED are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BKH is the superior value option right now.
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BKH or ED: Which Is the Better Value Stock Right Now?
Investors with an interest in Utility - Electric Power stocks have likely encountered both Black Hills (BKH - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Black Hills and Consolidated Edison have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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.
BKH currently has a forward P/E ratio of 14.05, while ED has a forward P/E of 18.46. We also note that BKH has a PEG ratio of 6.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ED currently has a PEG ratio of 9.23.
Another notable valuation metric for BKH is its P/B ratio of 1.11. 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, ED has a P/B of 1.51.
Based on these metrics and many more, BKH holds a Value grade of B, while ED has a Value grade of C.
Both BKH and ED are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BKH is the superior value option right now.