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MDU or SWX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Utility - Gas Distribution sector might want to consider either MDU Resources (MDU - Free Report) or Southwest Gas (SWX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
MDU Resources has a Zacks Rank of #2 (Buy), while Southwest Gas has a Zacks Rank of #3 (Hold) right now. This means that MDU'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 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.
MDU currently has a forward P/E ratio of 14.92, while SWX has a forward P/E of 22.43. We also note that MDU has a PEG ratio of 2.49. 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. SWX currently has a PEG ratio of 4.49.
Another notable valuation metric for MDU is its P/B ratio of 1.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SWX has a P/B of 1.59.
These are just a few of the metrics contributing to MDU's Value grade of B and SWX's Value grade of C.
MDU 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 MDU is likely the superior value option right now.
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MDU or SWX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Utility - Gas Distribution sector might want to consider either MDU Resources (MDU - Free Report) or Southwest Gas (SWX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
MDU Resources has a Zacks Rank of #2 (Buy), while Southwest Gas has a Zacks Rank of #3 (Hold) right now. This means that MDU'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 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.
MDU currently has a forward P/E ratio of 14.92, while SWX has a forward P/E of 22.43. We also note that MDU has a PEG ratio of 2.49. 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. SWX currently has a PEG ratio of 4.49.
Another notable valuation metric for MDU is its P/B ratio of 1.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SWX has a P/B of 1.59.
These are just a few of the metrics contributing to MDU's Value grade of B and SWX's Value grade of C.
MDU 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 MDU is likely the superior value option right now.