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.
CSIQ vs. ENPH: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Solar sector have probably already heard of Canadian Solar (CSIQ - Free Report) and Enphase Energy (ENPH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Canadian Solar has a Zacks Rank of #2 (Buy), while Enphase Energy has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CSIQ has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
CSIQ currently has a forward P/E ratio of 7.55, while ENPH has a forward P/E of 42.26. We also note that CSIQ has a PEG ratio of 0.30. 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. ENPH currently has a PEG ratio of 2.67.
Another notable valuation metric for CSIQ is its P/B ratio of 0.28. 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, ENPH has a P/B of 16.79.
These are just a few of the metrics contributing to CSIQ's Value grade of A and ENPH's Value grade of D.
CSIQ has seen stronger estimate revision activity and sports more attractive valuation metrics than ENPH, so it seems like value investors will conclude that CSIQ is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CSIQ vs. ENPH: Which Stock Is the Better Value Option?
Investors interested in stocks from the Solar sector have probably already heard of Canadian Solar (CSIQ - Free Report) and Enphase Energy (ENPH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Canadian Solar has a Zacks Rank of #2 (Buy), while Enphase Energy has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CSIQ has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
CSIQ currently has a forward P/E ratio of 7.55, while ENPH has a forward P/E of 42.26. We also note that CSIQ has a PEG ratio of 0.30. 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. ENPH currently has a PEG ratio of 2.67.
Another notable valuation metric for CSIQ is its P/B ratio of 0.28. 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, ENPH has a P/B of 16.79.
These are just a few of the metrics contributing to CSIQ's Value grade of A and ENPH's Value grade of D.
CSIQ has seen stronger estimate revision activity and sports more attractive valuation metrics than ENPH, so it seems like value investors will conclude that CSIQ is the superior option right now.