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MDU vs. CPK: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of MDU Resources (MDU - Free Report) and Chesapeake Utilities (CPK - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, MDU Resources has a Zacks Rank of #2 (Buy), while Chesapeake Utilities has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MDU likely has seen a stronger improvement to its earnings outlook than CPK has recently. But this is just one factor that value investors are interested in.
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.
MDU currently has a forward P/E ratio of 17.53, while CPK has a forward P/E of 24.35. We also note that MDU has a PEG ratio of 2.92. 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. CPK currently has a PEG ratio of 3.48.
Another notable valuation metric for MDU is its P/B ratio of 2.14. 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, CPK has a P/B of 2.88.
Based on these metrics and many more, MDU holds a Value grade of B, while CPK has a Value grade of C.
MDU has seen stronger estimate revision activity and sports more attractive valuation metrics than CPK, so it seems like value investors will conclude that MDU is the superior option right now.
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MDU vs. CPK: Which Stock Is the Better Value Option?
Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of MDU Resources (MDU - Free Report) and Chesapeake Utilities (CPK - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, MDU Resources has a Zacks Rank of #2 (Buy), while Chesapeake Utilities has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MDU likely has seen a stronger improvement to its earnings outlook than CPK has recently. But this is just one factor that value investors are interested in.
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.
MDU currently has a forward P/E ratio of 17.53, while CPK has a forward P/E of 24.35. We also note that MDU has a PEG ratio of 2.92. 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. CPK currently has a PEG ratio of 3.48.
Another notable valuation metric for MDU is its P/B ratio of 2.14. 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, CPK has a P/B of 2.88.
Based on these metrics and many more, MDU holds a Value grade of B, while CPK has a Value grade of C.
MDU has seen stronger estimate revision activity and sports more attractive valuation metrics than CPK, so it seems like value investors will conclude that MDU is the superior option right now.