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CSAN vs. BE: Which Stock Should Value Investors Buy Now?

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Investors interested in Alternative Energy - Other stocks are likely familiar with Cosan (CSAN - Free Report) and Bloom Energy (BE - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Cosan has a Zacks Rank of #2 (Buy), while Bloom Energy has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that CSAN likely has seen a stronger improvement to its earnings outlook than BE has recently. But this is just one piece of the puzzle 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 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.

CSAN currently has a forward P/E ratio of 15, while BE has a forward P/E of 412.83. We also note that CSAN has a PEG ratio of 0.84. 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. BE currently has a PEG ratio of 16.51.

Another notable valuation metric for CSAN 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, BE has a P/B of 23.30.

These are just a few of the metrics contributing to CSAN's Value grade of B and BE's Value grade of F.

CSAN 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 CSAN is likely the superior value option right now.


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