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NEP vs. EVRG: Which Stock Is the Better Value Option?

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Investors interested in Alternative Energy - Other stocks are likely familiar with NextEra Energy Partners (NEP - Free Report) and Evergy Inc (EVRG - 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.

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

NextEra Energy Partners and Evergy Inc are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NEP 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

NEP currently has a forward P/E ratio of 14.58, while EVRG has a forward P/E of 23.95. We also note that NEP has a PEG ratio of 1.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EVRG currently has a PEG ratio of 3.10.

Another notable valuation metric for NEP is its P/B ratio of 0.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EVRG has a P/B of 1.39.

These are just a few of the metrics contributing to NEP's Value grade of A and EVRG's Value grade of C.

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


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NextEra Energy Partners, LP (NEP) - free report >>

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