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EE or BE: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Excelerate Energy (EE - Free Report) and Bloom Energy (BE - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Excelerate Energy is sporting a Zacks Rank of #1 (Strong Buy), while Bloom Energy has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EE has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

EE currently has a forward P/E ratio of 17.85, while BE has a forward P/E of 55.90. We also note that EE has a PEG ratio of 0.92. 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. BE currently has a PEG ratio of 1.35.

Another notable valuation metric for EE is its P/B ratio of 1.49. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BE has a P/B of 8.32.

These metrics, and several others, help EE earn a Value grade of B, while BE has been given a Value grade of D.

EE sticks out from BE in both our Zacks Rank and Style Scores models, so value investors will likely feel that EE is the better option right now.


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