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POR or ELP: 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 Portland General Electric (POR - Free Report) and Paranaense de Energia (ELP - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Portland General Electric is sporting a Zacks Rank of #2 (Buy), while Paranaense de Energia has a Zacks Rank of #3 (Hold). This means that POR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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 13.24, while ELP has a forward P/E of 57.00. We also note that POR has a PEG ratio of 3.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ELP currently has a PEG ratio of 3.94.

Another notable valuation metric for POR is its P/B ratio of 1.21. 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, ELP has a P/B of 1.28.

Based on these metrics and many more, POR holds a Value grade of A, while ELP has a Value grade of C.

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


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Companhia Paranaense de Energia (COPEL) (ELP) - free report >>

Portland General Electric Company (POR) - free report >>

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