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SBS or AWR: Which Is the Better Value Stock Right Now?
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Investors interested in Utility - Water Supply stocks are likely familiar with Sabesp (SBS - Free Report) and American States Water (AWR - 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.
Sabesp and American States Water are both sporting a Zacks Rank of #2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
SBS currently has a forward P/E ratio of 4.44, while AWR has a forward P/E of 20.83. We also note that SBS has a PEG ratio of 1.30. 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. AWR currently has a PEG ratio of 3.01.
Another notable valuation metric for SBS is its P/B ratio of 2.33. 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, AWR has a P/B of 2.85.
These metrics, and several others, help SBS earn a Value grade of B, while AWR has been given a Value grade of D.
Both SBS and AWR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SBS is the superior value option right now.
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SBS or AWR: Which Is the Better Value Stock Right Now?
Investors interested in Utility - Water Supply stocks are likely familiar with Sabesp (SBS - Free Report) and American States Water (AWR - 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.
Sabesp and American States Water are both sporting a Zacks Rank of #2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
SBS currently has a forward P/E ratio of 4.44, while AWR has a forward P/E of 20.83. We also note that SBS has a PEG ratio of 1.30. 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. AWR currently has a PEG ratio of 3.01.
Another notable valuation metric for SBS is its P/B ratio of 2.33. 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, AWR has a P/B of 2.85.
These metrics, and several others, help SBS earn a Value grade of B, while AWR has been given a Value grade of D.
Both SBS and AWR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SBS is the superior value option right now.