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.
ETR vs. DTE: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Utility - Electric Power stocks are likely familiar with Entergy (ETR - Free Report) and DTE Energy (DTE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Currently, Entergy has a Zacks Rank of #2 (Buy), while DTE Energy has a Zacks Rank of #3 (Hold). This means that ETR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
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.
ETR currently has a forward P/E ratio of 18.69, while DTE has a forward P/E of 22.32. We also note that ETR has a PEG ratio of 2.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTE currently has a PEG ratio of 3.72.
Another notable valuation metric for ETR is its P/B ratio of 2.07. 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, DTE has a P/B of 3.03.
Based on these metrics and many more, ETR holds a Value grade of B, while DTE has a Value grade of C.
ETR stands above DTE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETR is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETR vs. DTE: Which Stock Is the Better Value Option?
Investors interested in Utility - Electric Power stocks are likely familiar with Entergy (ETR - Free Report) and DTE Energy (DTE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Currently, Entergy has a Zacks Rank of #2 (Buy), while DTE Energy has a Zacks Rank of #3 (Hold). This means that ETR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
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.
ETR currently has a forward P/E ratio of 18.69, while DTE has a forward P/E of 22.32. We also note that ETR has a PEG ratio of 2.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTE currently has a PEG ratio of 3.72.
Another notable valuation metric for ETR is its P/B ratio of 2.07. 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, DTE has a P/B of 3.03.
Based on these metrics and many more, ETR holds a Value grade of B, while DTE has a Value grade of C.
ETR stands above DTE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETR is the superior value option right now.