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DINO or CWEN: Which Is the Better Value Stock Right Now?

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Investors interested in Alternative Energy - Other stocks are likely familiar with HF Sinclair (DINO - Free Report) and Clearway Energy (CWEN - 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.

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.

HF Sinclair and Clearway Energy are sporting Zacks Ranks of #1 (Strong 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 DINO is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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 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.

DINO currently has a forward P/E ratio of 3.74, while CWEN has a forward P/E of 42.25. We also note that DINO has a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CWEN currently has a PEG ratio of 2.40.

Another notable valuation metric for DINO is its P/B ratio of 1.18. 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, CWEN has a P/B of 1.78.

Based on these metrics and many more, DINO holds a Value grade of A, while CWEN has a Value grade of C.

DINO stands above CWEN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DINO is the superior value option right now.


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Clearway Energy, Inc. (CWEN) - free report >>

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