We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
POR or ELP: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Portland General Electric (POR - Free Report) and Paranaense de Energia (ELP - 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Portland General Electric is sporting a Zacks Rank of #2 (Buy), while Paranaense de Energia has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that POR likely has seen a stronger improvement to its earnings outlook than ELP has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
POR currently has a forward P/E ratio of 12.70, while ELP has a forward P/E of 67.69. We also note that POR has a PEG ratio of 3.69. 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. ELP currently has a PEG ratio of 7.13.
Another notable valuation metric for POR is its P/B ratio of 1.16. 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, ELP has a P/B of 1.17.
Based on these metrics and many more, POR holds a Value grade of B, while ELP has a Value grade of C.
POR has seen stronger estimate revision activity and sports more attractive valuation metrics than ELP, so it seems like value investors will conclude that POR is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
POR or ELP: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Portland General Electric (POR - Free Report) and Paranaense de Energia (ELP - 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Portland General Electric is sporting a Zacks Rank of #2 (Buy), while Paranaense de Energia has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that POR likely has seen a stronger improvement to its earnings outlook than ELP has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
POR currently has a forward P/E ratio of 12.70, while ELP has a forward P/E of 67.69. We also note that POR has a PEG ratio of 3.69. 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. ELP currently has a PEG ratio of 7.13.
Another notable valuation metric for POR is its P/B ratio of 1.16. 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, ELP has a P/B of 1.17.
Based on these metrics and many more, POR holds a Value grade of B, while ELP has a Value grade of C.
POR has seen stronger estimate revision activity and sports more attractive valuation metrics than ELP, so it seems like value investors will conclude that POR is the superior option right now.