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NEP vs. ORA: Which Stock Is the Better Value Option?
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Investors with an interest in Alternative Energy - Other stocks have likely encountered both NextEra Energy Partners (NEP - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
NextEra Energy Partners and Ormat Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NEP is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 18.77, while ORA has a forward P/E of 75.10. We also note that NEP has a PEG ratio of 1.88. 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. ORA currently has a PEG ratio of 6.83.
Another notable valuation metric for NEP is its P/B ratio of 0.60. 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, ORA has a P/B of 2.73.
These are just a few of the metrics contributing to NEP's Value grade of B and ORA's Value grade of D.
NEP has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that NEP is the superior option right now.
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NEP vs. ORA: Which Stock Is the Better Value Option?
Investors with an interest in Alternative Energy - Other stocks have likely encountered both NextEra Energy Partners (NEP - Free Report) and Ormat Technologies (ORA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
NextEra Energy Partners and Ormat Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NEP is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 18.77, while ORA has a forward P/E of 75.10. We also note that NEP has a PEG ratio of 1.88. 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. ORA currently has a PEG ratio of 6.83.
Another notable valuation metric for NEP is its P/B ratio of 0.60. 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, ORA has a P/B of 2.73.
These are just a few of the metrics contributing to NEP's Value grade of B and ORA's Value grade of D.
NEP has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that NEP is the superior option right now.