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SBS vs. AWR: Which Stock Is the Better Value Option?
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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 presents investors with the better value opportunity right now? Let's 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.
Sabesp and American States Water are both sporting a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
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 5.66, while AWR has a forward P/E of 20.98. We also note that SBS has a PEG ratio of 1.66. 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 3.03.
Another notable valuation metric for SBS is its P/B ratio of 2.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AWR has a P/B of 2.87.
Based on these metrics and many more, SBS holds a Value grade of B, while AWR has 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 vs. AWR: Which Stock Is the Better Value Option?
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 presents investors with the better value opportunity right now? Let's 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.
Sabesp and American States Water are both sporting a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
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 5.66, while AWR has a forward P/E of 20.98. We also note that SBS has a PEG ratio of 1.66. 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 3.03.
Another notable valuation metric for SBS is its P/B ratio of 2.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AWR has a P/B of 2.87.
Based on these metrics and many more, SBS holds a Value grade of B, while AWR has 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.