We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ENB or WMB: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Oil and Gas - Production and Pipelines stocks are likely familiar with Enbridge (ENB - Free Report) and Williams Companies, Inc. (The) (WMB - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Enbridge has a Zacks Rank of #2 (Buy), while Williams Companies, Inc. (The) has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ENB likely has seen a stronger improvement to its earnings outlook than WMB has recently. However, value investors will care about much more than just this.
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.
ENB currently has a forward P/E ratio of 17.16, while WMB has a forward P/E of 24.04. We also note that ENB has a PEG ratio of 2.55. 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. WMB currently has a PEG ratio of 3.70.
Another notable valuation metric for ENB is its P/B ratio of 1.40. 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, WMB has a P/B of 1.68.
These are just a few of the metrics contributing to ENB's Value grade of B and WMB's Value grade of C.
ENB has seen stronger estimate revision activity and sports more attractive valuation metrics than WMB, so it seems like value investors will conclude that ENB is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ENB or WMB: Which Is the Better Value Stock Right Now?
Investors interested in Oil and Gas - Production and Pipelines stocks are likely familiar with Enbridge (ENB - Free Report) and Williams Companies, Inc. (The) (WMB - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Enbridge has a Zacks Rank of #2 (Buy), while Williams Companies, Inc. (The) has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ENB likely has seen a stronger improvement to its earnings outlook than WMB has recently. However, value investors will care about much more than just this.
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.
ENB currently has a forward P/E ratio of 17.16, while WMB has a forward P/E of 24.04. We also note that ENB has a PEG ratio of 2.55. 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. WMB currently has a PEG ratio of 3.70.
Another notable valuation metric for ENB is its P/B ratio of 1.40. 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, WMB has a P/B of 1.68.
These are just a few of the metrics contributing to ENB's Value grade of B and WMB's Value grade of C.
ENB has seen stronger estimate revision activity and sports more attractive valuation metrics than WMB, so it seems like value investors will conclude that ENB is the superior option right now.