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SMNEY vs. BE: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Alternative Energy - Other stocks have likely encountered both Siemens Energy AG Unsponsored ADR (SMNEY - Free Report) and Bloom Energy (BE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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, Siemens Energy AG Unsponsored ADR is sporting a Zacks Rank of #1 (Strong Buy), while Bloom Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SMNEY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

SMNEY currently has a forward P/E ratio of 67.15, while BE has a forward P/E of 111.06. We also note that SMNEY has a PEG ratio of 1.47. 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. BE currently has a PEG ratio of 3.96.

Another notable valuation metric for SMNEY is its P/B ratio of 7.13. 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, BE has a P/B of 20.

These metrics, and several others, help SMNEY earn a Value grade of B, while BE has been given a Value grade of D.

SMNEY stands above BE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SMNEY is the superior value option right now.


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