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D vs. CTRI: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Dominion Energy (D - Free Report) and Centuri Holdings (CTRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Dominion Energy has a Zacks Rank of #2 (Buy), while Centuri Holdings has a Zacks Rank of #3 (Hold) right now. This means that D's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

D currently has a forward P/E ratio of 17.92, while CTRI has a forward P/E of 42.62. We also note that D has a PEG ratio of 1.32. 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. CTRI currently has a PEG ratio of 1.62.

Another notable valuation metric for D is its P/B ratio of 1.61. 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, CTRI has a P/B of 11.08.

Based on these metrics and many more, D holds a Value grade of B, while CTRI has a Value grade of C.

D has seen stronger estimate revision activity and sports more attractive valuation metrics than CTRI, so it seems like value investors will conclude that D is the superior option right now.


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