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CSIQ vs. SEDG: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Solar sector might want to consider either Canadian Solar (CSIQ - Free Report) or SolarEdge Technologies (SEDG - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Canadian Solar has a Zacks Rank of #2 (Buy), while SolarEdge Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CSIQ likely has seen a stronger improvement to its earnings outlook than SEDG has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CSIQ currently has a forward P/E ratio of 5.45, while SEDG has a forward P/E of 23.48. We also note that CSIQ has a PEG ratio of 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SEDG currently has a PEG ratio of 1.07.
Another notable valuation metric for CSIQ is its P/B ratio of 0.80. 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, SEDG has a P/B of 6.44.
These metrics, and several others, help CSIQ earn a Value grade of A, while SEDG has been given a Value grade of C.
CSIQ is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CSIQ is likely the superior value option right now.
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CSIQ vs. SEDG: Which Stock Is the Better Value Option?
Investors looking for stocks in the Solar sector might want to consider either Canadian Solar (CSIQ - Free Report) or SolarEdge Technologies (SEDG - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Canadian Solar has a Zacks Rank of #2 (Buy), while SolarEdge Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CSIQ likely has seen a stronger improvement to its earnings outlook than SEDG has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CSIQ currently has a forward P/E ratio of 5.45, while SEDG has a forward P/E of 23.48. We also note that CSIQ has a PEG ratio of 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SEDG currently has a PEG ratio of 1.07.
Another notable valuation metric for CSIQ is its P/B ratio of 0.80. 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, SEDG has a P/B of 6.44.
These metrics, and several others, help CSIQ earn a Value grade of A, while SEDG has been given a Value grade of C.
CSIQ is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CSIQ is likely the superior value option right now.